Barclays Blue Rewards

ceredigion

Steve_xx wrote: »

Or, could it be that Barclays are mindful of the new tax rules due in 2016 that allow you to keep the first 1k/500 of interest earned for basic/higher rate taxpayers?

I would be quite surprised if they are using a criteria that doesn't exist yet and may not yet .

vouch0r wrote: »

oooh i applied a few weeks ago , didnt realise its taxable aswell.. not really worth it all for £ 2 a month..

not sure wether to just close it all down

If you've already set it up , I would hang on for awhile ,the tax status is currently in a state of flux on here as nobody seems to have had it confirmed one way or another as yet. That said it always amuses me that these large organisations don't seem to be able to get their T & C`s nailed down and squeaky clean before the enterprising folks on here get hold of them and start pulling them to pieces.

JesseJames_2

anoncol wrote: »

I thought it only counted for new mortgages? In fact you posted it yesterday.

That's true, and that was before I applied.

On the blurb before you apply - it says existing mortgages do not.
But Archi Bald posted else where that it does.

So I applied anyway, and the personal conditions that I received, showed that it does count for existing mortgages.
And if it ends up it doesn't then I think there will be a few goodwill payments made to a lot of existing mortgage holders.

ColdIron

I've had a partial confirmation from Barclays but await the return call I was promised. What they have said so far, after I pointed out the section in the T&Cs, is :

I've looked into it and it's not net of income tax but you may need to still declare it, we will sent annual statements

As far as I read it you will get £7 gross credited to your account but it may still be taxable as income

One of the problems with offering a reward less a fee rather than just a straight reward like Halifax is that the tax bite is higher

If you just got a £4.00 reward you would get £3.20 after BR tax, £2.40 after HR tax

With £7.00 you get £5.60 - £3.00 fee = £2.60 at BR but at HR rate tax the £7.00 only gives you £4.20 - £3.00 fee = £1.20

Definitely not worth opening an account for and barely worth setting up the 2 DDs even if you are an existing customer

This is just speculation by me so far in lieu of any clarity in the T&Cs and from customer services, I will follow up should they respond to my formal query

Steve_xx

ceredigion wrote: »

I would be quite surprised if they are using a criteria that doesn't exist yet and may not yet .

I think that as from this April that you can declare to HMRC to have your interest paid gross if your total income is less than approximately £15,600. So Barclays could be referencing that?

43WellDone91

If you have a Barclays Additions Active account paying a monthly fee of £15 and then switch to Barclays Blue Rewards account, the saving will be much greater all round, especially if you also have Barclays Home Insurance and Barclays (Woolwich) Mortgage as you will not have to pay the additions account fee and will also gain from the rewards on the new Blue Rewards account, mortgage and insurance rewards, so overall I reckon on a potential saving, excluding any tax implications of £27/month. Am I correct in suggesting this will be the case before I decide to change?

spottybutterfly

I'm totally naive when it comes to HMRC as, I've always just had on employer and they have sorted out my tax, taking it from payslips. (But I don't often pay it as I don't earn very much). How do we declare the £7 a month to the tax man?

I haven't set blue rewards up yet as I only just set up a second direct debit.

Steve_xx

spottybutterfly wrote: »

I'm totally naive when it comes to HMRC as, I've always just had on employer and they have sorted out my tax, taking it from payslips. (But I don't often pay it as I don't earn very much). How do we declare the £7 a month to the tax man?

I haven't set blue rewards up yet as I only just set up a second direct debit.

If you earn less than £15, 600 you wont need to worry about declaring it.

anoncol

Steve_xx wrote: »

If you earn less than £15, 600 you wont need to worry about declaring it.

And how would we if we earned over?

Steve_xx

anoncol wrote: »

And how would we if we earned over?

You may have to declare it. We are awaiting an answer to this point from ColdIron.

fuzzgun19

So, I'm already with Barclays, and actually use my account for DD's already.

I only pay in £500pm by transfer from another bank, but could up that to 800 then transfer the 300 back out.

So If I signed up now, I'd pay out £3 on 1st May, and get £7 reward on 1st June.. have I got that right?