halifax reward and tax credit

coolcats

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

HappyMJ

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.

Darksparkle

As far as I was aware you don't declare any rewards or cash back. Only the interest.

Mersey_2

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)

xylophone

Cashback isn't income but the Halifax £5 reward is "other taxable income".

The net amount is £60 and the gross is £75.

HappyMJ

Darksparkle wrote: »

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.

Darksparkle

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

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

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

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

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?