Halifax reward payments

soulsaver

busy_dad said:

kimwp said:

It took me ages to find the links, so for anyone interested:

Why Halifax £5 reward payments are "miscellaneous payments": https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/savings-and-tax 

What the trading allowance is: https://www.litrg.org.uk/tax-guides/self-employment/what-trading-allowance 

Halifax T&C's for the Extra Rewards - relevant info at the bottom of page 3 showing that the £5 for keeping a £5k balance is paid after tax: https://www.halifax.co.uk/assets/pdf/bankaccounts/pdf/banking-offers-guide.pdf

Morning, I’m having some trouble getting my head around the tax treatment for bank reward payments despite the above advice.

For the Halifax £5 reward the general advice I’ve found (and from the first link above) is that it should be declared on a tax return. Halifax T&Cs indicate that if £5k is kept in the account the reward is paid net of 20% income tax, however this isn’t mentioned if the reward is for spending £500 on debit card so I assume tax isn’t deducted. 

For the latter I am therefore wondering if this needs to go on a return as gross additional income, net or not at all. A poster earlier in this thread indicated it would be treated as cash back and therefore tax free, but I can’t find any other reference to this.

Any help appreciated.

Answered in previous posts, rules haven't changed.

busy_dad

soulsaver said:

busy_dad said:

kimwp said:

It took me ages to find the links, so for anyone interested:

Why Halifax £5 reward payments are "miscellaneous payments": https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/savings-and-tax 

What the trading allowance is: https://www.litrg.org.uk/tax-guides/self-employment/what-trading-allowance 

Halifax T&C's for the Extra Rewards - relevant info at the bottom of page 3 showing that the £5 for keeping a £5k balance is paid after tax: https://www.halifax.co.uk/assets/pdf/bankaccounts/pdf/banking-offers-guide.pdf

Morning, I’m having some trouble getting my head around the tax treatment for bank reward payments despite the above advice.

For the Halifax £5 reward the general advice I’ve found (and from the first link above) is that it should be declared on a tax return. Halifax T&Cs indicate that if £5k is kept in the account the reward is paid net of 20% income tax, however this isn’t mentioned if the reward is for spending £500 on debit card so I assume tax isn’t deducted. 

For the latter I am therefore wondering if this needs to go on a return as gross additional income, net or not at all. A poster earlier in this thread indicated it would be treated as cash back and therefore tax free, but I can’t find any other reference to this.

Any help appreciated.

Answered in previous posts, rules haven't changed.

Sorry but I’m still not clear. One prev poster said it doesn’t as is treated as cash back, others have said it does.

To be honest I thought it would, but is this gross or net (for the debit card £500 spend reward?). Halifax T&Cs only refer to the reward being paid net for the £5k balance. If it’s gross, surely all BR and HR taxpayers who receive this would have to notify HMRC regardless of whether they complete a tax return or not.

Descrabled

Reward for Debit Card Payment of £500

The £5 reward payment is neither gross nor net. Rather it is not taxable, as previously stated a few times in this thread