halifax reward and tax credit

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Does anyone know when filling the tax credit form in does the £5 a month from halifax reward get included on the interest recieved or other money or not at all? Any help please? Also does it go as the £5 recieved or is it the gross amount? Thanks
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  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
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    Other income that tax has been taken off.

    It doesn't really matter where it goes. You don't get a penalty putting a figure in the wrong box so if you did put it under interest which it isn't the result for last tax year is the same. In future years though as interest will be taxed differently it will make a difference as the first £1,000 interest is now tax free but not the reward payment which is taxed.

    You put the gross amount of £6.25/month down and £1.25/month for the tax deducted. If you don't pay tax you get the £1.25 back.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
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    As far as I was aware you don't declare any rewards or cash back. Only the interest.
  • Mersey_2
    Mersey_2 Posts: 1,679 Forumite
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    Correct. Cashback is not income, in the same way Boots Advantage Card points, Tesco vouchers, Nectar points are not. Nor are betting wins etc (as seems to often get asked on here)
    Please be polite to OPs and remember this is a site for Claimants and Appellants to seek redress against their bank, ex-boss or retailer. If they wanted morality or the view of the IoD or Bank they'd ask them.
  • xylophone
    xylophone Posts: 44,614 Forumite
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    Cashback isn't income but the Halifax £5 reward is "other taxable income".

    The net amount is £60 and the gross is £75.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
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    As far as I was aware you don't declare any rewards or cash back. Only the interest.

    Depends if you want the £1.25 back or not.

    If you're a basic rate tax payer it doesn't really matter if you fail to declare this income as tax has already been taken off.

    If you're a higher rate income then the Halifax monthly payment must be declared as income and additional tax paid.

    Cash back and most reward payments do not get declared anywhere...it's just the Halifax monthly payment as it's income.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
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    HappyMJ wrote: »
    Depends if you want the £1.25 back or not.

    If you're a basic rate tax payer it doesn't really matter if you fail to declare this income as tax has already been taken off.

    If you're a higher rate income then the Halifax monthly payment must be declared as income and additional tax paid.

    Cash back and most reward payments do not get declared anywhere...it's just the Halifax monthly payment as it's income.

    The op is asking about declaring it for tax credits not for tax purposes.
  • coolcats
    coolcats Posts: 295 Forumite
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    So for tax credit purpose its classed as other income and needs to be added in as the gross figure for the year (£75). And as a non tax payer I can get the tax back on it?

    Thanks for all the help
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    edited 13 May 2016 at 11:59AM
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    coolcats wrote: »
    So for tax credit purpose its classed as other income and needs to be added in as the gross figure for the year (£75). And as a non tax payer I can get the tax back on it?

    Thanks for all the help

    I don't think it's declared for tax credit purposes personally but I would suggest you call them as it is not covered in their technical guidance. Unless they consider it to be the same as interest then it would be declared.

    Is that the only other income you have? If so you wouldn't declare it anyway as under £300.
  • coolcats
    coolcats Posts: 295 Forumite
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    Still confused, but halifax have said its classed as a reward, so will not add it in for tax credit. As should work same as cashback a bonus to use the account.
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    edited 23 May 2016 at 10:03AM
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    coolcats wrote: »
    Still confused, but halifax have said its classed as a reward, so will not add it in for tax credit. As should work same as cashback a bonus to use the account.

    Have you asked tax credits?

    Also as mentioned before, is your total other income over £300?
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