Halifax Rewards Tax

ForumUser7

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

Peter999_2

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

ForumUser7 said:

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

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

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).

Dazed_and_C0nfused

Bridlington1 said:

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

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

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

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

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.