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

masonic

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.

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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).

The Reward Extra for £500 debit card spend is £5 gross / £5 net. The Reward Extra for £5000 balance is £6.25 gross / £5 net. The £5 for £500 debit card spend therefore costs Halifax less than the £5 for £5000 balance.

Non-taxpayers cannot claim anything back on their £5 for £500 debit card spend.

Not sure why anyone is still arguing to the contrary when we have documentary evidence above.

General_Grant

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).

It is interest which is paid gross but the £5 (for holding £5K minimum throughout the month) is not interest and therefore BR tax has to be deducted from the £6.25 gross payment before it reaches your account.

derrick

General_Grant said:

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).

It is interest which is paid gross but the £5 (for holding £5K minimum throughout the month) is not interest and therefore BR tax has to be deducted from the £6.25 gross payment before it reaches your account.

It makes no difference to the monthly payout,holding £5K or spending £500 on DC, (we have both), the monthly pay into the accounts is £5.00.

General_Grant

derrick said:

General_Grant said:

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).

It is interest which is paid gross but the £5 (for holding £5K minimum throughout the month) is not interest and therefore BR tax has to be deducted from the £6.25 gross payment before it reaches your account.

It makes no difference to the monthly payout,holding £5K or spending £500 on DC, the monthly pay into the accounts is £5.00.

I'm not sure what point you are trying to make - and probably you don't understand the point I was making.

It makes no difference to the monthly pay into the account but there is a difference in what the £5 represents. 
If it is for DC payments, it is treated as cash back on the £500 spend.  Therefore that is the total payment by Halifax.
If it is for holding £5K in the account, it is a payment for that (keeping the balance), not a refund/cash back nor interest.  So that £5.00 is paid net of tax and Halifax account to HMRC for the £1.25.

King_Of_Fools

derrick said:

General_Grant said:

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).

It is interest which is paid gross but the £5 (for holding £5K minimum throughout the month) is not interest and therefore BR tax has to be deducted from the £6.25 gross payment before it reaches your account.

It makes no difference to the monthly payout,holding £5K or spending £500 on DC, (we have both), the monthly pay into the accounts is £5.00.

It does make a difference to somebody who earns less than their personal allowance as they can claim back the £1.25 tax per month. And somebody who earns above the higher earning threshold will need to declare the £5 per month income and pay extra tax.

OceanSound

Already receiving reward for 2 current accounts since last year. Signed up for third account earlier this month. Paid in  £1502 on 14 May. Haven't been overdrawn, and made £500.86 debit card transaction 21 may. Its showing on account as 'account debited on'= 23 May and comes up with date 24 may on recent transactions.

When I track the reward it's showing  'as of 23 May you've spent £0.00'. It's been like that for the past few days. Any ideas? Call support would be a popular one I'm guessing 😉 

carpy

as of 24th you've spent £500+ so would expect this show once tracking is updated...

colsten

OceanSound said:

Already receiving reward for 2 current accounts since last year. Signed up for third account earlier this month. Paid in  £1502 on 14 May. Haven't been overdrawn, and made £500.86 debit card transaction 21 may. Its showing on account as 'account debited on'= 23 May and comes up with date 24 may on recent transactions.

When I track the reward it's showing  'as of 23 May you've spent £0.00'. It's been like that for the past few days. Any ideas? Call support would be a popular one I'm guessing 😉 

The very last thing you want to do is call CS.

Instead, stop panicking and wait for the tracker to update. Right now, it sits at last updated 23 May. It would obviously not include transactions that are dated after May 23. The tracker will no doubt update before long but even if it doesn‘t, it looks as if  you have met the qualification criteria for May.

OceanSound

Not quite reached breaking point on the panic stations front yet.

Only flagging it. 

I've been using the tracker quite a bit with the other two accounts and the debit card payment usually (by that I mean, on each instance before apart from the reward account 3 situ I'm experiencing now) track about 2 working days behind. I've never seen it lag 4 working days behind (assuming it doesn't suddenly go through today). 

colsten

There's always a first for everything