Rewards Are they taxable, how will HMRC know ?

RG2015

I have done exactly as I suggested and Googled are Barclays Blue Rewards taxable. Sadly there is contradictory information out there.

The first question is whether Barclays report this to HMRC and the second is whether we should enter this as income on our tax returns?

wmb194

RG2015 said:

I have done exactly as I suggested and Googled are Barclays Blue Rewards taxable. Sadly there is contradictory information out there.

The first question is whether Barclays report this to HMRC and the second is whether we should enter this as income on our tax returns?

It used to be taxable but it isn't anymore.

https://www.barclays.co.uk/help/accounts/added-features/tax-blue-rewards/

"The £7 Loyalty Reward received up to and including November 2016 for being part of Barclays Blue Rewards is subject to UK income tax and may need to be declared to H M Revenue & Customs.

All other current rewards earned through Blue Rewards, and any Loyalty Reward received from December 2016, are not subject to UK income tax."

Dazed_and_C0nfused

Zanderman said:

Dazed_and_C0nfused said:

Zanderman said:

MikeJXE said:

Thank you both.

Regarding interest might be wrong I will be keeping my own records on a spreadsheet.

Interest is only taxable if the amount (of interest) is over £1000 for most people. 

In your case, if you're only just over the personal tax allowance anyway the interest amount would need to be even higher to be liable for tax.  

So I suspect you're over-worrying - tax is very unlikely to be payable on your interest.

Edited to add:  Have a look at this Gov page:  https://www.gov.uk/apply-tax-free-interest-on-savings

PS current account interest is treated no differently to savings account interest - you seem to imply you worry they are different, they're not.

Non ISA interest isn't taxable but otherwise interest is taxable income.

Some may be covered by unused Personal Allowance.

Or taxed at 0% via either the savings starter rate band of savings nil rate band (aka Personal Savings Allowance) but it's still taxable income.

I think you mean ISA (not non ISA) interest isn't taxable.  Otherwise your post is saying, in effect, the same as mine as explained on the link I gave..

Yes, very careless 😕

RG2015

Like football goalkeepers, the greatest ever are only as good as their last bit of carelessness.

badger09

Dazed_and_C0nfused said:

Zanderman said:

Dazed_and_C0nfused said:

Zanderman said:

MikeJXE said:

Thank you both.

Regarding interest might be wrong I will be keeping my own records on a spreadsheet.

Interest is only taxable if the amount (of interest) is over £1000 for most people. 

In your case, if you're only just over the personal tax allowance anyway the interest amount would need to be even higher to be liable for tax.  

So I suspect you're over-worrying - tax is very unlikely to be payable on your interest.

Edited to add:  Have a look at this Gov page:  https://www.gov.uk/apply-tax-free-interest-on-savings

PS current account interest is treated no differently to savings account interest - you seem to imply you worry they are different, they're not.

Non ISA interest isn't taxable but otherwise interest is taxable income.

Some may be covered by unused Personal Allowance.

Or taxed at 0% via either the savings starter rate band of savings nil rate band (aka Personal Savings Allowance) but it's still taxable income.

I think you mean ISA (not non ISA) interest isn't taxable.  Otherwise your post is saying, in effect, the same as mine as explained on the link I gave..

Yes, very careless 😕

Hope you're going to correct it?

Ed-1

RG2015 said:

keiran said:

It would be super-great if a knowledgeable MSEr could list all the banks with their respective rewards, etc making clear which are taxable, which are "cashback", etc etc 

If you have a specific account in mind a Google search should provide you with this information.

I doubt anyone here has all of this knowledge without researching themselves, and I can’t think why anyone would do this out of the goodness of their own hearts.

PS. Unless of course you want to prove me wrong.

Barclays: tax-free.

Halifax: the £500 debit card spend option is tax-free; the £5k in account option is paid net of 20% income tax and is taxable income.

Coop: paid net of 20% income tax and is taxable income.

Natwest/RBS and Danske Bank: rewards paid gross but no definitive answer. They leave any tax implications to the customer.