Nationwide Fairer Payment Scheme - Interest

rebecca1

I qualified for this payment recently. My Statement of Fees from Nationwide stated Total Interest Earned £100.00 . The Nationwide reported this figure to HMRC, my question is :  Should this be declared as Interest as it wasn't earned on any 'Investment account as such ?      

WillPS

You can only imagine that a team of lawyers and accountants will have agreed this in advance with HMRC. I can't imagine there's much chance it'll be wrong.

eskbanker

How is the payment treated for tax purposes?

The payment is taxable savings income. This means that it is treated in the same way as any interest you may earn on your savings account or current account. We are not required to deduct any tax from the payment, but we will report it to HM Revenue & Customs (HMRC).

You may be liable to income tax on the payment, depending on whether the total amount of interest you have received in the tax year is more than your Personal Savings Allowance. You can find out more about your Personal Savings Allowance at nationwide.co.uk/psa

This tax information is based on our understanding of current law and HMRC practice applying to UK resident taxpayers. Current law and HMRC practice may change. For more information visit hmrc.gov.uk. Nationwide takes no responsibility for tax advice and if you are in any doubt, you should seek your own tax advice.  

https://www.nationwide.co.uk/-/assets/nationwidecouk/documents/about/fairer-share/nationwide-fairer-share-payment-terms-and-conditions.pdf

rebecca1

So if you are a basic rate tax payer you will pay 20% tax on the £100.00 ? Correct? 

HillStreetBlues

rebecca1 said:

So if you are a basic rate tax payer you will pay 20% tax on the £100.00 ? Correct? 

As it's being classed as interest then will depend on your Personal Allowance/Personal Savings Allowance