halifax reward

tosca21

Halifax are still paying £5 a month net so who now is getting the tax ? It was £5 net before the tax free interest came into force TSB have increased their interest accordingly why not Halifax ?

HappyMJ

tosca21 wrote: »

Halifax are still paying £5 a month net so who now is getting the tax ? It was £5 net before the tax free interest came into force TSB have increased their interest accordingly why not Halifax ?

It's not a payment of interest. It's a reward payment. It's considered income.

It's still £6.25 gross and £5 net.

You can still reclaim the difference back if you are not a basic rate tax payer.

Vortigern

tosca21 wrote: »

Halifax are still paying £5 a month net so who now is getting the tax ?

HMRC are getting the tax, just like they always did.

Murphybear

HappyMJ wrote: »

It's not a payment of interest. It's a reward payment. It's considered income.

It's still £6.25 gross and £5 net.

You can still reclaim the difference back if you are not a basic rate tax payer.

We both have a Reward account and don't pay tax at the moment. We have been told on many occasions by Halifax that because it's not interest we cannot claim the tax back. Should we raise this with HMRC as my OH has had his Reward account since it started and although the sums aren't massive for us pensioners every little helps:rotfl:

PeacefulWaters

Murphybear wrote: »

We both have a Reward account and don't pay tax at the moment. We have been told on many occasions by Halifax that because it's not interest we cannot claim the tax back. Should we raise this with HMRC as my OH has had his Reward account since it started and although the sums aren't massive for us pensioners every little helps:rotfl:

The Halifax web site tells you to complete an R40 and forward it to HMRC.

For each year that you qualify.

LXdaddy

Murphybear wrote: »

We both have a Reward account and don't pay tax at the moment. We have been told on many occasions by Halifax that because it's not interest we cannot claim the tax back. Should we raise this with HMRC as my OH has had his Reward account since it started and although the sums aren't massive for us pensioners every little helps:rotfl:

As said in this thread and the several others on the same topic.

It is not interest so does not come within the new Personal Savings Allowance £1,000. But if you are not a tax payer (ie your income including the reward payment is less than £11,000 this year) then you can claim the tax back using R40