RBS - Is the £5 max monthly reward paid gross or net of tax?

supersaver21

I have been trying to find out from Google searching and Forum posts whether the £5 max monthly reward paid by RBS into a "MyRewards" account is paid gross or net of tax.  I have read about Barclays, Halifax and Co-op and how their rewards are subject (or not) to tax but I can't find anything about RBS.  I would like to know if anyone can help me ascertain the following information:
1. Is the £5 max reward paid gross or net of tax?
2. Is the reward taxable income?
3. Whether the reward is eligible for the PSA?
Thanks for any help you are able to give me on this.

TheMightySwordfish

Is it not counted as Cashback as it is a reward not Interest? Sorry to answer with a question 😬

noh

The third case here may be appicable.
https://www.taxadvisermagazine.com/article/savings-income-issues-including-bank-accounts-paying-%E2%80%98rewards%E2%80%99

supersaver21

TheMightySwordfish said:

Is it not counted as Cashback as it is a reward not Interest? Sorry to answer with a question 😬

Whether it is cashback or interest or income, the same questions still stand as far as I am concerned so still looking for answers. 

supersaver21

noh said:

The third case here may be appicable.
https://www.taxadvisermagazine.com/article/savings-income-issues-including-bank-accounts-paying-%E2%80%98rewards%E2%80%99

Yes, I found this article before I posted my question and did find it very useful but wanted to try and find specifically the rules that apply to RBS so was hoping someone on this forum will probably know the answer.

ANGELFLOWER

Has anyone found the answer to this question?
I am thinking it could be classified as cashback, as £2 for each of £2 minimum direct debits, and the £1 for mobile login which is stated to be a refund on the account fee in the terms. There is no mention of tax in the terms though annoyingly. Wondering if it will need to go on my tax return or not. Any insight gratefully received.
I have Barclays Rewards and they specify it as cashback.
Thanks.

tg99

ANGELFLOWER said:

Has anyone found the answer to this question?
I am thinking it could be classified as cashback, as £2 for each of £2 minimum direct debits, and the £1 for mobile login which is stated to be a refund on the account fee in the terms. There is no mention of tax in the terms though annoyingly. Wondering if it will need to go on my tax return or not. Any insight gratefully received.
I have Barclays Rewards and they specify it as cashback.
Thanks.

I called Natwest who said it was not taxable.

RG2015

tg99 said:

HANGELFLOWER said:

Has anyone found the answer to this question?
I am thinking it could be classified as cashback, as £2 for each of £2 minimum direct debits, and the £1 for mobile login which is stated to be a refund on the account fee in the terms. There is no mention of tax in the terms though annoyingly. Wondering if it will need to go on my tax return or not. Any insight gratefully received.
I have Barclays Rewards and they specify it as cashback.
Thanks.

I called Natwest who said it was not taxable.

I do not believe that an unsupported conversation with a bank helpline person would satisfy HMRC.

ANGELFLOWER

tg99 said:

ANGELFLOWER said:

Has anyone found the answer to this question?
I am thinking it could be classified as cashback, as £2 for each of £2 minimum direct debits, and the £1 for mobile login which is stated to be a refund on the account fee in the terms. There is no mention of tax in the terms though annoyingly. Wondering if it will need to go on my tax return or not. Any insight gratefully received.
I have Barclays Rewards and they specify it as cashback.
Thanks.

I called Natwest who said it was not taxable.

I Tweeted them and they told me it isn't taxable. They didn't refer me to anything written down that supports this. So I am still not sure. Any one else? I wish they would put something in writing in their terms.

RG2015

ANGELFLOWER said:

tg99 said:

ANGELFLOWER said:

Has anyone found the answer to this question?
I am thinking it could be classified as cashback, as £2 for each of £2 minimum direct debits, and the £1 for mobile login which is stated to be a refund on the account fee in the terms. There is no mention of tax in the terms though annoyingly. Wondering if it will need to go on my tax return or not. Any insight gratefully received.
I have Barclays Rewards and they specify it as cashback.
Thanks.

I called Natwest who said it was not taxable.

I Tweeted them and they told me it isn't taxable. They didn't refer me to anything written down that supports this. So I am still not sure. Any one else? I wish they would put something in writing in their terms.

At least you have this written down on an official NatWest site.

ANGELFLOWER

RG2015 said:

ANGELFLOWER said:

tg99 said:

ANGELFLOWER said:

Has anyone found the answer to this question?
I am thinking it could be classified as cashback, as £2 for each of £2 minimum direct debits, and the £1 for mobile login which is stated to be a refund on the account fee in the terms. There is no mention of tax in the terms though annoyingly. Wondering if it will need to go on my tax return or not. Any insight gratefully received.
I have Barclays Rewards and they specify it as cashback.
Thanks.

I called Natwest who said it was not taxable.

I Tweeted them and they told me it isn't taxable. They didn't refer me to anything written down that supports this. So I am still not sure. Any one else? I wish they would put something in writing in their terms.

At least you have this written down on an official NatWest site.

I replied to their Tweet and asked for something more substantial in writing and they said they will give me something. So should stand up to scrutiny if required.