Halifax Reward Account changing to £3 charge with “lifestyle rewards”

King_Of_Fools

masonic said:

portenio said:

King_Of_Fools said:

Zanderman said:

Yes, I used to get the £5 on the clarity card spend too.
I still see no evidence anything has changed - apart from that cryptic (by omission) para in the T&Cs. 
I would hope we know before the year end - by asking! 
Which I will do.

Did you ever get confirmation about the £5 for £500 spend tax status?
The renewal letter still only flags the £5 for £5000 saved as being taxable so it still implies that the £5 for £500 spend is tax-free.

When preparing tax return for previous financial year that was due on 31/1/21, I carried out a thorough research online.
There were many accountancy advisors speaking about Halifax Rewards previous scheme. Those that sounded more sensible to me adviced to enter both the income and deducted tax total figures corresponding to this item.
Hence that I did. 
Now the issue is that we don't see "REWARD NET" on the statement as previously. 
And obviously accountancy sites have not updated the info concerning new scheme.

Halifax usually produce a tax certificate in the statement after the new tax year where taxable income has been earned. I presume those keeping £5k in their accounts have received this, while those receiving cashback have not.

Anybody who had the old scheme would have received an annual tax statement for 2020-2021 that had at least two months (April and May) of the old payments (£4 net, £5 gross).
That is all that appeared on mine but I opted for the digital film rental instead of the money.

masonic

polymaff said:

masonic said:

portenio said:

King_Of_Fools said:

Zanderman said:

Yes, I used to get the £5 on the clarity card spend too.
I still see no evidence anything has changed - apart from that cryptic (by omission) para in the T&Cs. 
I would hope we know before the year end - by asking! 
Which I will do.

Did you ever get confirmation about the £5 for £500 spend tax status?
The renewal letter still only flags the £5 for £5000 saved as being taxable so it still implies that the £5 for £500 spend is tax-free.

When preparing tax return for previous financial year that was due on 31/1/21, I carried out a thorough research online.
There were many accountancy advisors speaking about Halifax Rewards previous scheme. Those that sounded more sensible to me adviced to enter both the income and deducted tax total figures corresponding to this item.
Hence that I did. 
Now the issue is that we don't see "REWARD NET" on the statement as previously. 
And obviously accountancy sites have not updated the info concerning new scheme.

Halifax usually produce a tax certificate in the statement after the new tax year where taxable income has been earned. I presume those keeping £5k in their accounts have received this, while those receiving cashback have not.

Don't confuse Rewards with Cashback.  Rewards have been, and are, paid nett of basic rate income tax.  Cashback hasn't been the issue, has it?

That's no longer correct. There are two types of Reward: one is paid for holding a balance in your account and is paid net of BR tax. The other is paid on a debit card spend and is paid without any tax deducted. The latter would be cashback, while the former would be an annual payment.

masonic

King_Of_Fools said:

masonic said:

portenio said:

King_Of_Fools said:

Zanderman said:

Yes, I used to get the £5 on the clarity card spend too.
I still see no evidence anything has changed - apart from that cryptic (by omission) para in the T&Cs. 
I would hope we know before the year end - by asking! 
Which I will do.

Did you ever get confirmation about the £5 for £500 spend tax status?
The renewal letter still only flags the £5 for £5000 saved as being taxable so it still implies that the £5 for £500 spend is tax-free.

When preparing tax return for previous financial year that was due on 31/1/21, I carried out a thorough research online.
There were many accountancy advisors speaking about Halifax Rewards previous scheme. Those that sounded more sensible to me adviced to enter both the income and deducted tax total figures corresponding to this item.
Hence that I did. 
Now the issue is that we don't see "REWARD NET" on the statement as previously. 
And obviously accountancy sites have not updated the info concerning new scheme.

Halifax usually produce a tax certificate in the statement after the new tax year where taxable income has been earned. I presume those keeping £5k in their accounts have received this, while those receiving cashback have not.

Anybody who had the old scheme would have received an annual tax statement for 2020-2021 that had at least two months (April and May) of the old payments (£4 net, £5 gross).
That is all that appeared on mine but I opted for the digital film rental instead of the money.

Would be interesting to hear from anyone who was enrolled in the old Reward scheme (I wasn't), who signed up for the £5 for £500 spend option, and has an annual tax statement - does it include the new Rewards or not?

I've not been issued with a tax statement for 2020/21, presumably because all of my Reward Extra payments have been cashback and I didn't receive any old Reward payments for that tax year.

Herbalus

Here you go!

Received this for the £2 net reward on the old scheme that was received on 2 May 2020 before I switched the the £5 spend from June 2020 onwards.

King_Of_Fools

Herbalus said:

Here you go!

Received this for the £2 net reward on the old scheme that was received on 2 May 2020 before I switched the the £5 spend from June 2020 onwards.

So, we can finally say for certain that of all the 8 reward combinations only the £5 for £5000 saved is taxable (as was implied by omission in the terms and conditions).
Thank you.

derrick

masonic said:

Don't confuse Rewards with Cashback.  Rewards have been, and are, paid nett of basic rate income tax.  Cashback hasn't been the issue, has it?

That's no longer correct. There are two types of Reward: one is paid for holding a balance in your account and is paid net of BR tax. The other is paid on a debit card spend and is paid without any tax deducted. The latter would be cashback, while the former would be an annual payment.

This is not correct, we have 6 Reward accounts between us,, 2 hold a minimum balance of £5000 and the others are £500 Debit Card spend, all of them pay £5.00 net into the account each month.

We have at the moment 2 Annual summaries one for £5000 holding and one for DC spend, both show "Gross Reward (before tax)", "Tax Deducted" and "Net Reward Paid."

soulsaver

@derrick The summary on the Rewards you cite refers to the old Rewards scheme and covers the two months of the 20/21 tax year (at £2 pm) prior to the intro of Rewards Extra in June '20.
- says £5 gross; £1 tax deducted; £4 net (= 2x £2 pm).

The comment from Masonic refers to the later Rewards Extra scheme and is correct - you wouldn't get a tax certificate for Rewards Extra reward as it's now deemed cash back.

eta spacing

soulsaver

King_Of_Fools said:

Herbalus said:

Here you go!

Received this for the £2 net reward on the old scheme that was received on 2 May 2020 before I switched the the £5 spend from June 2020 onwards.

So, we can finally say for certain that of all the 8 reward combinations only the £5 for £5000 saved is taxable (as was implied by omission in the terms and conditions).
Thank you.

The £5pm on £5k in Reward Extra is paid 'tax paid' so is £6.25 taxed @ BR.
Not to be confused with The Vantage acs which is 0.78% on £5k paid gross, taxable.

derrick

soulsaver said:

@derrick The summary on the Rewards you cite refers to the old Rewards scheme and covers the two months of the 20/21 tax year (at £2 pm) prior to the intro of Rewards Extra in June '20.
- says £5 gross; £1 tax deducted; £4 net.

The comment from Masonic refers to the later Rewards Extra scheme and is correct - you wouldn't get a tax certificate for Rewards Extra reward as it's now deemed cash back.

eta spacing

Then how come we are still only receiving £5 net into the accounts since April this year and not £6.25 gross?

There is tax to pay on this "Reward" if you are a taxpayer,(or you claim it back via R40).

soulsaver

derrick said:

soulsaver said:

@derrick The summary on the Rewards you cite refers to the old Rewards scheme and covers the two months of the 20/21 tax year (at £2 pm) prior to the intro of Rewards Extra in June '20.
- says £5 gross; £1 tax deducted; £4 net.

The comment from Masonic refers to the later Rewards Extra scheme and is correct - you wouldn't get a tax certificate for Rewards Extra reward as it's now deemed cash back.

eta spacing

Then how come we are still only receiving £5 net into the accounts since April this year and not £6.25 gross?

There is tax to pay on this "Reward" if you are a taxpayer,(or you claim it back via R40).

As I said, it's 'tax paid' if your referring to the £5k continuous. If you want to pay additional tax on it, I'm sure Rishi will appreciate it.

And if you've got the account with £5k in it for the last tax year I suggest you read your statement of fees and interest.