Reward Card (tax on a fiver)

diamonds

So a a non taxpayer on low income should Halifax pay me over £5 ?

PeacefulWaters

diamonds wrote: »

So a a non taxpayer on low income should Halifax pay me over £5 ?

No.

You should complete an HMRC form R40 and reclaim £1.25 for each month you've received the finer from HMRC.

colsten

Consumerist wrote: »

It occurs to me that these payments have not, in the past, shown up on any P60 as income.

The P60 is a statement from your employer(s). Even if you were a Halifax employee, I doubt the Payroll department would know that you hold a Halifax Reward account and may have received reward payments on it.

Westie983

colsten wrote: »

The P60 is a statement from your employer(s). Even if you were a Halifax employee, I doubt the Payroll department would know that you hold a Halifax Reward account and may have received reward payments on it.

They don't it's just your income from wages on P60 although I have successfully claimed back the £1.25 per month for the last two years, applied via post when I get the tax certicate each year.

diamonds

PeacefulWaters wrote: »

No.

You should complete an HMRC form R40 and reclaim £1.25 for each month you've received the finer from HMRC.

I was under thought that would cover my TSB 5%, but not Halifax reward of £5 as it is not interest but I would guess gift, tax isn't a strong point as I have not been up with the UK changes in 10 years.

diamonds

olivetti wrote: »

It is a reward.

It is not interest.

It is taxable income.

It is not covered by the £1000/£500 Personal Savings Allowance as it is not savings income by definition.

So if that is correct, am I taxed at source with Halifax @£5 and like Peaceful said I claim it back ?


Typical LBG, make nothing simple, a week before a new tax year and changes nothing on the Halifax website for under the personal allowance, 20% or 40% on interest or Reward payments :rotfl:


TSB just as bad, surely a licensed bank should be providing changes in tax implications to customers, it must be written in some bit of HMRC legislation somewhere...

diamonds

http://www.thisismoney.co.uk/money/saving/article-3023407/Could-Halifax-Reward-customers-savings-tax-Budget-giveaway-snaffled.html


So LBG will ongoing be keeping the tax it used to pay HMRC... bar stewards.

Westie983

diamonds wrote: »

So if that is correct, am I taxed at source with Halifax @£5 and like Peaceful said I claim it back ?


Typical LBG, make nothing simple, a week before a new tax year and changes nothing on the Halifax website for under the personal allowance, 20% or 40% on interest or Reward payments :rotfl:


TSB just as bad, surely a licensed bank should be providing changes in tax implications to customers, it must be written in some bit of HMRC legislation somewhere...

Lots of leaflets and display boards in branches, I'm sure website will be updated by TYE. No changes to reward payment and interest is to be paid gross

bjbyorkshire

So... After all the discussion re this £60 reward, can I just ignore the amount totally when calculating the £1000 tax free interest?

Consumerist

bjbyorkshire wrote: »

So... After all the discussion re this £60 reward, can I just ignore the amount totally when calculating the £1000 tax free interest?

Yes. That seems to be the consensus and is what I will do until there is some authoritative clarification.

But if HMRC regards these payments as income then it seems to me that you will need to add £75 to your other gross income in any tax return. Then add £15 to the amount of tax already paid.

Edit
Halifax have always been pass masters of smoke-and-mirrors banking and in this they have again excelled themselves.