Halifax Rewards Tax

Hi,

I get £5 per month for the £500 spend on this account.

I think I read previously that tax was already deducted from this?

If so, as someone who doesn't need to currently pay tax is it easy to reclaim and how please?

Thank you

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Comments

  • Peter999_2
    Peter999_2 Posts: 1,282 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    My mother reclaims the tax on hers every year.   She phoned the Halifax and they sent her a form to complete and then they pay her the £5 plus the tax.
  • Ed-1
    Ed-1 Posts: 3,953 Forumite
    Part of the Furniture 1,000 Posts Name Dropper

    Hi,

    I get £5 per month for the £500 spend on this account.

    I think I read previously that tax was already deducted from this?

    If so, as someone who doesn't need to currently pay tax is it easy to reclaim and how please?

    Thank you

    There is no tax on the debit card spend option as it's £5 cashback.
  • WillPS
    WillPS Posts: 5,032 Forumite
    Part of the Furniture 1,000 Posts Newshound! Name Dropper
    edited 8 March 2024 at 10:36PM
    If you take the '£5 for keeping £5000 in the account' option, you are in fact paid £6.25 gross and £5 net (as it is income). [This is a silly thing to do though, even if you are eligble for the full whack, as you are better off saving the money in a proper savings account.]

    If you take the sensible '£5 for spending £500' option, you are paid £5 tax free (as it is cashback).

    Page 2 and 3 on this document: https://www.halifax.co.uk/assets/pdf/bankaccounts/pdf/banking-offers-guide.pdf
  • Bridlington1
    Bridlington1 Posts: 3,593 Forumite
    1,000 Posts Third Anniversary Photogenic Name Dropper
    As for how easy is it to reclaim the tax if you pick the ``silly" Halifax reward option, it's just a case of filling in an online form with HMRC and they send you a cheque for the total tax paid after however many weeks (or at least it is with the Co-op reward which I assume requires the same form).
  • As for how easy is it to reclaim the tax if you pick the ``silly" Halifax reward option, it's just a case of filling in an online form with HMRC and they send you a cheque for the total tax paid after however many weeks (or at least it is with the Co-op reward which I assume requires the same form).

    It's an R40 (but only for those people who don't compete a Self Assessment return).
  • Over62
    Over62 Posts: 139 Forumite
    Tenth Anniversary 100 Posts Photogenic
    I had thought that Halifax Rewards were all taxable so pleased to find out that the debit card option ones aren't.  I know that Barclays Blue Rewards aren't but can't find out about RBS/NatWest.  Their bot, Cora, is useless.  Can anyone help?
  • wmb194
    wmb194 Posts: 4,751 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 10 March 2024 at 8:49AM
    Over62 said:
    I had thought that Halifax Rewards were all taxable so pleased to find out that the debit card option ones aren't.  I know that Barclays Blue Rewards aren't but can't find out about RBS/NatWest.  Their bot, Cora, is useless.  Can anyone help?
    No, not taxable either because you 'do' something to earn it i.e. deposit £1,250 and have two DDs taken.

    Edit: so it's cashback.
  • Over62
    Over62 Posts: 139 Forumite
    Tenth Anniversary 100 Posts Photogenic
    wmb194 said:
    Over62 said:
    I had thought that Halifax Rewards were all taxable so pleased to find out that the debit card option ones aren't.  I know that Barclays Blue Rewards aren't but can't find out about RBS/NatWest.  Their bot, Cora, is useless.  Can anyone help?
    No, not taxable either because you 'do' something to earn it i.e. deposit £1,250 and have two DDs taken.
    Thank you for this information.  I am delighted as when I deduct all my Rewards, it takes me under the PSA limit.  Happy bunny.
  • WillPS
    WillPS Posts: 5,032 Forumite
    Part of the Furniture 1,000 Posts Newshound! Name Dropper
    Over62 said:
    wmb194 said:
    Over62 said:
    I had thought that Halifax Rewards were all taxable so pleased to find out that the debit card option ones aren't.  I know that Barclays Blue Rewards aren't but can't find out about RBS/NatWest.  Their bot, Cora, is useless.  Can anyone help?
    No, not taxable either because you 'do' something to earn it i.e. deposit £1,250 and have two DDs taken.
    Thank you for this information.  I am delighted as when I deduct all my Rewards, it takes me under the PSA limit.  Happy bunny.
    AIUI none of these rewards count as 'interest'. It's either income (taxable, not interest) or cashback (tax free).

    The one exception I can think of was the Nationwide 'fairer share', which was declared to HMRC as interest (and so did count for PSA). But that also wasn't a 'Reward' anyone signed up for.
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