Barclays Blue Rewards - HMRC treatment

badger09

vacheron wrote: »

I received the official Barclays letter today stating that the £7 reward is indeed taxable, but the other rewards are not.

It also confirms that the £3 monthly fee is NOT deductible,

So for a higher rate taxpayer:

(Reward - 40% tax - fee) = (£7 - £2.80 - £3) = £1.20!

... Plus many people may now have to fill in a self assessment just because of this piddling amount. :mad:

Thanks Barclays!

Not true.

Simply write to your tax office after the end of the relevant tax year, telling them how much you have received. They will make an adjustment in your PAYE code number to collect the tax due.

vacheron

badger09 wrote: »

Not true.

Simply write to your tax office after the end of the relevant tax year, telling them how much you have received. They will make an adjustment in your PAYE code number to collect the tax due.

I stand corrected, however it's still a lot of bother for what, for many, after taxes and fees, will be less than £15 quid per year from a "headline" £84.

badger09

vacheron wrote: »

I stand corrected, however it's still a lot of bother for what, for many, after taxes and fees, will be less than £15 quid per year from a "headline" £84.

Its really not a lot of bother. I've been doing it for 9 years in relation to untaxed interest from Zopa.

For small amounts like £84 you may find HMRC will ignore the year in question and only adjust your code for the current and future years by including an estimate, based on the figure you've just declared.