Monthly reward/interest on Halifax Reward and TSB Classic Plus.

sivs

Following on from this.. I received my £5 from halifax today. However shouldn't this have been paid Gross not Net?

My TSB has been paid Gross.

Thanks,

spagnut

sivs wrote: »

Following on from this.. I received my £5 from halifax today. However shouldn't this have been paid Gross not Net?

My TSB has been paid Gross.

Thanks,

See my question earlier today for the reply from Halifax when I asked. For more info search on thisismoney, article title 'Could-Halifax-Reward-customers-savings-tax-Budget-giveaway-snaffled' - sorry cannot post links.

The reward was interest and was taxed as such, it is now apparently another sort of payment which is not a tax free cashback reward, which is still taxed at source, but you can claim the tax back (if you are below the lower earnings limit?). Confused - a little!

Frogletina

spagnut wrote: »

See my question earlier today for the reply from Halifax when I asked. For more info search on thisismoney, article title 'Could-Halifax-Reward-customers-savings-tax-Budget-giveaway-snaffled' - sorry cannot post links.

The reward was interest and was taxed as such, it is now apparently another sort of payment which is not a tax free cashback reward, which is still taxed at source, but you can claim the tax back (if you are below the lower earnings limit?). Confused - a little!

I refer you to the following thread

https://forums.moneysavingexpert.com/discussion/5457606

frogletina

sivs

Thanks for replying... I will learn to read things more carefully..

polymaff

spagnut wrote: »

The reward was interest and was taxed as such, it is now apparently another sort of payment which is not a tax free cashback reward, which is still taxed at source, but you can claim the tax back (if you are below the lower earnings limit?). Confused - a little!

It has never been an interest payment. You declare it, and the tax deducted, as Other UK Income on the self-assessment return and it will be assessed in the same way as earnings and pensions are. What HMRC call Non-Savings Taxable Income.

Westie983

Its always been a reward payment, Halifax dont pay interest on any of their accounts.

Interest will be paid gross, which explains why TSB/LLoyds have done so, (as they pay you interest)

Halifax pay you £5 reward so this is still at £5 as its not interest, but that said if you are a non tax payer you can fill out a R40 to claim back £15.

PeacefulWaters

Westie983 wrote: »

Its always been a reward payment, Halifax dont pay interest on any of their accounts.

I assume you mean current accounts.

Student account, Expresscash and Cardcash all pay interest though.

EarthBoy

PeacefulWaters wrote: »

I assume you mean current accounts.

Student account, Expresscash and Cardcash all pay interest though.

Those three are all current accounts, aimed at specific groups, i.e. students, youths and young adults.

Westie983

PeacefulWaters wrote: »

I assume you mean current accounts.

Student account, Expresscash and Cardcash all pay interest though.

Yes I was talking about the Rewards account which is what the thread is about, but yes you are correct the accounts you mention do pay interest.