Why Halifax Reward still pays £5 and not £6.25

Mishomeister

I understand that according to the below thread:

https://forums.moneysavingexpert.com/discussion/3708735

up until now non taxpayers were able to reclaim the £1.25 x 12 via submitting the form to HMRC. So I was expecting that Halifax would either pay £6.25 per month after this new tax free £1000 kicked in, or everyone would be able to reclaim?

This is however looking opposite. Everyone will now get flat £5.

However to add more in to confusion the reward I have received from Halifax today in to my account is shown as NET whether any interest I have received from my Lloyds and TSB accounts is shown as Gross.

Does this means Halifax are still paying HMRC £1.25 per month that I should be able to reclaim at the end of the tax year?

Peter999_2

Yes it does.

The £5 is not interest and therefore doesn't come out of the £1,000 allowance.

alternate

I can kinda understand why some ppl get angry about asking the same question over and again.

Check out one of the half dozen threads under this one.

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

https://forums.moneysavingexpert.com/discussion/5450941

https://forums.moneysavingexpert.com/discussion/5407456

https://forums.moneysavingexpert.com/discussion/5449238

https://forums.moneysavingexpert.com/discussion/5442715

https://forums.moneysavingexpert.com/discussion/5442762

https://forums.moneysavingexpert.com/discussion/5438989

PeacefulWaters

Does this means Halifax are still paying HMRC £1.25 per month

that I should be able to reclaim at the end of the tax year?

Only if you're a non-taxpayer. The reward payment is not covered by the personal savings allowance.

Mishomeister

Peter999 wrote: »

Yes it does.

The £5 is not interest and therefore doesn't come out of the £1,000 allowance.

If it is not why non taxpayers were/are able to reclaim it?

polymaff

Mishomeister wrote: »

If it is not why non taxpayers were/are able to reclaim it?

Because it is covered by the Personal Allowance.

alternate

Mishomeister wrote: »

If it is not why non taxpayers were/are able to reclaim it?

It is income. If you don't pay tax then it counts towards your allowance. So if you are under the tax threshold you get it back.