Halifax reward account and reward from April?

evergreen

When banks start paying gross interest from April, will the reward still be £5 a month on Halifax reward account or will it go up to £6 to cover tax you might have to pay?

[Deleted User]

Don't know the answer, I'm sorry. But if there is a change, it won't affect the April Reward payment which is paid on 1 April. The new system applies for interest payments made on 6 April onwards.

EarthBoy

There are already several other threads asking the same question. The answer is that technically the reward is not classed as interest, so it will still be taxed, so it will still be £5.

notbritishgas

EarthBoy wrote: »

There are already several other threads asking the same question. The answer is that technically the reward is not classed as interest, so it will still be taxed, so it will still be £5.

So presumably you are saying that Halifax will send £1.25 per account per month to HMRC same as they do now?

nearlyretired2004

Yes yes yes

(Sorry for the repetion - MSE wont allow a 3 character answer...!!)

blue_eyes

It's not interest, ok? It's a reward.... So it's not part of the personal savings allowance.

Why not check what Halifax say:
http://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/ (expand the last bit)
"The £5 reward will be paid each month if you pay in £750 or more, pay two different direct debits and remain in credit throughout the previous calendar month.
This payment is ‘net’ of income tax, which means we pay it after taking off income tax at the rate set by law (currently 20%). If you’re a higher-rate taxpayer you may have to pay extra income tax on the reward payment. The gross amount is £6.25 - this is the amount before income tax is taken off."


Compare this with the new personal allowance from the 2014 budget:

https://www.gov.uk/government/publications/personal-savings-allowance-factsheet
"From April 2016 HM Revenue & Customs (HMRC) is introducing a tax-free Personal Savings Allowance of £1,000 (£500 for higher rate taxpayers) for savings income or interest.
The new allowance means that most people will no longer pay tax on their savings interest."


satisfied?

derrick

nearlyretired2004 wrote: »

Yes yes yes

(Sorry for the repetion - MSE wont allow a 3 character answer...!!)

Yes...............

derrick

Yes ..................

d70cw6

no?




?????????

ceredigion

^
Suppose you think that is clever !!!!

nearlyretired2004

Im impressed ....tried to post yes and it said min 10 characters .... Ha Ha !!

Did u use spaces?