Halifax Reward Question

Organist

I note that the £5 monthly reward is paid net of tax. Is it possible to register using an R85 to get the reward paid gross?

Thanks

Ed-1

Organist wrote: »

I note that the £5 monthly reward is paid net of tax. Is it possible to register using an R85 to get the reward paid gross?

Thanks

No - it's something HMRC class as an 'annual payment' from which banks are obliged to deduct 20% at source.

In fact even with the new personal savings allowance coming in next April and banks paying savings interest gross from then, at the moment they'll still be forced to pay payments such as rewards net of basic rate tax unless they change the regulations - there's a consultation out today discussing this very issue: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/444945/Deduction_of_income_tax_from_savings_income_-_implementation_of_the_Personal_Savings_Allowance.pdf

oldfella

include it in your end of year tax submission and they will repay it

polymaff

Ed-1 wrote: »

No - it's something HMRC class as an 'annual payment' from which banks are obliged to deduct 20% at source.

And yet Barclays claim that their Blue Reward is paid gross.