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Halifax Reward account
stuballs
Posts: 1 Newbie
Hi,
I have a Halifax Reward current account which gets the £5 reward every month which on their website says its paid to me net of tax (£6.25 gross). As there have been recent changes this year to interest paid into accounts I wanted to ask that as a non tax payer myself should I now be able to get the £6.25 per month automatically. Having contacted Halifax they told me I need to claim this back myself at the end of the tax year from HMRC. When I explained that all other accounts I have with other banks now pay interest gross and it is my liability to contact HMRC if I did need to pay tax, they just said sorry but this is how they do this at Halifax. Thinking of it another way maybe the £5 reward each month is not generally classed as interest, then if so why would I be advised from Halifax to claim the tax back at the end of each financial year. Can anyone please elaborate. Thanks.
I have a Halifax Reward current account which gets the £5 reward every month which on their website says its paid to me net of tax (£6.25 gross). As there have been recent changes this year to interest paid into accounts I wanted to ask that as a non tax payer myself should I now be able to get the £6.25 per month automatically. Having contacted Halifax they told me I need to claim this back myself at the end of the tax year from HMRC. When I explained that all other accounts I have with other banks now pay interest gross and it is my liability to contact HMRC if I did need to pay tax, they just said sorry but this is how they do this at Halifax. Thinking of it another way maybe the £5 reward each month is not generally classed as interest, then if so why would I be advised from Halifax to claim the tax back at the end of each financial year. Can anyone please elaborate. Thanks.
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Comments
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There are lots of other threads about this. HMRC don't treat the reward as interest, so Halifax deduct the tax from it. You can reclaim it from HMRC if you're a non tax payer, but not otherwise.
Search for all the other threads for further info.0 -
It's not interest. If it was can you calculate the rate they pay by giving me £5 on an effective balance of zero?Thinking of it another way maybe the £5 reward each month is not generally classed as interest, then if so why would I be advised from Halifax to claim the tax back at the end of each financial year. Can anyone please elaborate. Thanks.
As above you can claim it via your tax return if needed.Remember the saying: if it looks too good to be true it almost certainly is.0 -
The reward payment isn't interest. It's classed as income which is taxed. They take the tax off and if you want it back you have to reclaim it.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Hi,
I have a Halifax Reward current account which gets the £5 reward every month which on their website says its paid to me net of tax (£6.25 gross). As there have been recent changes this year to interest paid into accounts I wanted to ask that as a non tax payer myself should I now be able to get the £6.25 per month automatically. Having contacted Halifax they told me I need to claim this back myself at the end of the tax year from HMRC. When I explained that all other accounts I have with other banks now pay interest gross and it is my liability to contact HMRC if I did need to pay tax, they just said sorry but this is how they do this at Halifax. Thinking of it another way maybe the £5 reward each month is not generally classed as interest, then if so why would I be advised from Halifax to claim the tax back at the end of each financial year. Can anyone please elaborate. Thanks.
It's income so you can only claim the tax back if your total income is below your personal allowance of £11,000.0 -
I'm surprised that no one has brought this up before.0
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I'm surprised that no one has brought this up before.
Im sure I have never tried the explain the reason behind this 'missing' £1.25.
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