R40

derrick

This has probably been asked and answered but I can't find it.

I am filling in an R40 re claiming back the tax paid on Halifax Rewards, however I also have rewards from Barclays Blue and CO-OP bank.

As you will probably know Halifax deduct tax and some can claim it back, I have the following to put as "rewards":-

CO-OP £48
Barclays £84
Halifax £202.50 Gross. Tax £40.50. Net £162.00

Totals Gross £334.50

I am looking to claim back the £40.50 tax, (should not be a problem), but where do I put this?

Does the Halifax go in boxes 3.1, 3.2, 3.3, (3.4), and the rest in 7.4, 7.5, 7.6, or all of it in boxes 7.4/5/6?

I think it should go in the 7's boxes as none of it is interest, am I correct?



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Dazed_and_confused

You cannot include the Halifax reward at section 3 as it isn't interest (and therefore not appropriate to be taxed at the starter savings or personal savings allowance rates).

Haven't come across Barclays or Co-Op rewards before but if they're taxable income like the Halifax reward is then the whole lot looks applicable to section 7.

Dazed_and_confused

Found this on Barclays website,

Tax treatment of Barclays Blue Rewards
The £7 Loyalty Reward received up to and including November 2016 for being part of Barclays Blue Rewards is subject to UK income tax and may need to be declared to H M Revenue & Customs.
All other current rewards and cashback earned through Blue Rewards, and any Loyalty Reward received from December 2016, are not subject to UK income tax.

Dazed_and_confused

And this on a Co-op leaflet from their website which would suggest you could be understating both the income you have earned from the Co-op and also the tax (or maybe the leaflet is out of date!)

Tax information
Where Rewards are paid to you, we make the £4 monthly ‘Account Rewards’ payment to you ‘net’ of income tax, which means we pay it after taking off income tax at the rate set by law (currently 20%).
If you’re a higher or additional rate taxpayer you may have to pay extra income tax on the reward payment.
The gross amount is £5 – this is the amount before income tax is taken off.
If you’re a UK non-taxpayer, you cannot register to receive the £4 monthly ‘Account Rewards’
payment gross. However, you may be able to claim income tax back from HMRC if:
• you’re a UK non-taxpayer; or
• the amount of tax we have taken off is more than you have to pay on your income.
Please note: tax rates may change in the future.
We’ll provide, on request, an annual Everyday Rewards tax certificate setting out details of the Account Rewards you have received during the previous tax year. Please note that if you currently receive an annual tax certificate for your account, this will not include Everyday Rewards. If you require this information, please request an annual Everyday Rewards tax certificate, which will be issued to you separately.

derrick

I forgot that the CO-OP do it the same as Halifax, so that is another £12 to claim back.