Halifax reward - £2 - tax

No_Name

Just want to check as recently switched.


Am I right is saying that as a higher rate tax payer, I need to pay a further 50p in tax on the £2 reward?


So if I missed a month, I'm only effectively losing out on £1.50?


Also, as part of the switch incentive payable after 6 months, does the account have to be in credit for the whole period? I don't think i t was one of the conditions.

Brewer20

I had the Halifax reward incentive, it was paid out after a delay last month. I just kept the account in credit to cover the two DD's going out each month, so I paid in the required amount (£1500) each month and out it came again over the 6 months.
I'm a none tax payer ATM so can't help over the £2 incentive per month, hope this helps.

PRAISETHESUN

As far as I'm aware you are correct - the benefit is paid net of basic rate tax, so if you were paying higher rate tax you'd have to declare it and pay the extra tax. As for the switch incentive, I can't seem to find the T&Cs on their website but from memory the account didn't need to be in credit but it wasn't allowed to go overdrawn (ie. you can have a £0+ balance) in addition to the minimum monthly pay in and debit card use requirement.

colsten

Answers from Halifax to both your questions: https://www.halifax.co.uk/bankaccounts/rates-rewards-fees/

No_Name

Thanks, but doesn't really address the switch question.


From memory, I believe the only conditions for the £85 payout after 6 months were:


- £1500 pay in per month
- be on paperless option
- use debit card once

Brewer20

No_Name wrote: »

Thanks, but doesn't really address the switch question.


From memory, I believe the only conditions for the £85 payout after 6 months were:


- £1500 pay in per month
- be on paperless option
- use debit card once

I answered your switch question in #2 post. In short pay-in £1500 per month but you don't have to leave it in. I would also stay in credit with the account.

No_Name

Brewer20 wrote: »

I answered your switch question in #2 post. In short pay-in £1500 per month but you don't have to leave it in. I would also stay in credit with the account.

You answered it according to your own experience, staying in credit.


What I am trying to ascertain is whether the £85 incentive is still payable if you've gone into your overdraft for a day or two.


I don't believe staying in credit was a condition.