Cashback

RG2015

I have just read that cashback payments from banks are liable for tax and paid after the deduction of 20%. However, non taxpayers can claim a refund by completing an R40 tax form.

The example quoted was the Halifax £5.00 monthly reward where £1.25 could be reclaimed. (The article was from 2016 and the reward is now £3.00).

Does anyone know if this is still the case now and does it apply to all bank cashback and rewards?

PS: Does this also apply to switching incentives such as £100. This would mean a tax rebate of £25 for a non taxpayer.

Katiehound

As far as I am aware switch incentives are not taxable as they are not deemed to be interest.

isasmurf

As I understand it, there are 3 types of payment:

Rewards: Payments unrelated to the balance, payable for more than a year to accounts with no fee. These are taxed at source.

Miscellaneous payments: as above but to accounts with a fee. These are taxable but are not taxed at source.

Cashback: incentive payments not lasting more than a year or being a discount on goods or services. Not taxable

Terry98

http://www.thisismoney.co.uk/money/saving/article-3595338/HMRC-robs-savers-tax-perk-monthly-bank-account-bonuses-claiming-count-annual-payments.html

RG2015

Thanks Terry,

This is the article to which I was referring but I have also found the one on the link below.

https://forums.moneysavingexpert.com/discussion/5027548