Nationwide fairer share £100 payout

youngretired

If anyone was in this situation as described by jadex last year, can you please advise how Nationwide gave the figures to HMRC this year or on your tax certificate. 
We are in this situation this year (I never received the payment last year but my husband did), my payment was paid into our joint account as I don't hold a sole and my husband's was paid into his sole account (he is a 40% tax payer). So if he has £150 put against his PSA, then he will be over his allowance as we only allocated £100 towards it.

MSE_ForumTeam5

We've merged the two threads on the payout

WillPS

jadex said:

WillPS said:

Zanderman said:

WillPS said:

Zanderman said:

torchie said:

I am surprised (and pleased) that my £100 payments have arrived. What is puzzling is that my wife and I each have a couple of dormant current accounts that we keep as burner accounts if needed and all the accounts have received the £100!

You mean that the £100 went (once) into your individual dormant accounts? A total of £100 each? Or that you got multiple payments?!

Mrs Z-man and I qualified via our joint FlexPlus account. I have, in addition to that, a dormant FlexAccount. Mrs Z-man doesn't have another Nwide account.

This morning my £100 has appeared in my FlexAccount. A second £100, presumably hers, went into our joint account. The implication being that, for some reason that makes sense only to Nwide, they're not paying the £100 into the qualifying account if there's an alternative. Odd. But only one £100 each, so not that odd!

They made pretty clear that they'll only pay your Fairer Share in to your joint current account if you don't have a sole current account.

https://www.nationwide.co.uk/about-us/fairer-share/terms-and-conditions/#8-when-and-how-will-the-payment-be-made

8. When and how will the payment be made?

...

We will pay the money into your Nationwide current account. If you hold more than one current account with us, we may pay the money into any of those accounts. We will pay the money into an account in your sole name if you have one and will pay it into a joint account if you do not.

Fair enough, though doesn't really alter my statement that it's for some reason that only makes sense to Nationwide! Why not pay the money into the qualifying account? There's no obvious logic to not doing that.

Because it's a payment for the member, not the account. It makes perfect sense (to me, anyway) to try and pay in to a sole account to make that distinction clear, where possible.

But Zanderman's case (which is exactly the same as mine) brings into a question tax implication.
This is not a bonus or incentive or whatever but it is reported as interest to HMRC.
Therefore person with both sole account (£100 paid in) and joint account (£100 by default divided 50/50) gets £150 interest whilst another person with only joint account gets £50 interest... whereas it should  have been £100 for both. Let's assume that one partner is 45% tax payer and gets £150 whilst the other has PSA big enough to accommodate £100 free of tax (but only gets £50 credited)... that'd be £22.50 additional tax liability only because of the way NW decided to distribute 2x £100

I disagree. Take the example of an 'old fashioned' building society account, held in your sole name, which allows you to nominate whether the interest is paid in to the savings account or a nominated (current) account, and you take the latter option, opting to deposit interest in a nominated joint account. The interest is still yours alone, it doesn't matter where it was deposited - and that's how I'd expect it to be reported to HMRC.

I'd be very happy to be disproven on this, because I'd personally get £50 of my PSA back if it was - but my expectation is that Nationwide will book this as £100 interest earned for me.

jadex

WillPS said:

jadex said:

WillPS said:

Zanderman said:

WillPS said:

Zanderman said:

torchie said:

I am surprised (and pleased) that my £100 payments have arrived. What is puzzling is that my wife and I each have a couple of dormant current accounts that we keep as burner accounts if needed and all the accounts have received the £100!

You mean that the £100 went (once) into your individual dormant accounts? A total of £100 each? Or that you got multiple payments?!

Mrs Z-man and I qualified via our joint FlexPlus account. I have, in addition to that, a dormant FlexAccount. Mrs Z-man doesn't have another Nwide account.

This morning my £100 has appeared in my FlexAccount. A second £100, presumably hers, went into our joint account. The implication being that, for some reason that makes sense only to Nwide, they're not paying the £100 into the qualifying account if there's an alternative. Odd. But only one £100 each, so not that odd!

They made pretty clear that they'll only pay your Fairer Share in to your joint current account if you don't have a sole current account.

https://www.nationwide.co.uk/about-us/fairer-share/terms-and-conditions/#8-when-and-how-will-the-payment-be-made

8. When and how will the payment be made?

...

We will pay the money into your Nationwide current account. If you hold more than one current account with us, we may pay the money into any of those accounts. We will pay the money into an account in your sole name if you have one and will pay it into a joint account if you do not.

Fair enough, though doesn't really alter my statement that it's for some reason that only makes sense to Nationwide! Why not pay the money into the qualifying account? There's no obvious logic to not doing that.

Because it's a payment for the member, not the account. It makes perfect sense (to me, anyway) to try and pay in to a sole account to make that distinction clear, where possible.

But Zanderman's case (which is exactly the same as mine) brings into a question tax implication.
This is not a bonus or incentive or whatever but it is reported as interest to HMRC.
Therefore person with both sole account (£100 paid in) and joint account (£100 by default divided 50/50) gets £150 interest whilst another person with only joint account gets £50 interest... whereas it should  have been £100 for both. Let's assume that one partner is 45% tax payer and gets £150 whilst the other has PSA big enough to accommodate £100 free of tax (but only gets £50 credited)... that'd be £22.50 additional tax liability only because of the way NW decided to distribute 2x £100

I disagree. Take the example of an 'old fashioned' building society account, held in your sole name, which allows you to nominate whether the interest is paid in to the savings account or a nominated (current) account, and you take the latter option, opting to deposit interest in a nominated joint account. The interest is still yours alone, it doesn't matter where it was deposited - and that's how I'd expect it to be reported to HMRC.

I'd be very happy to be disproven on this, because I'd personally get £50 of my PSA back if it was - but my expectation is that Nationwide will book this as £100 interest earned for me.

to me it looks like you have mixed up 2 things though: in your scenario the interest is solely yours and it is also reported by building society which holds your personal savings account, not by joint account operator which only gets money later on, so joint account has nothing to do with origin of said interest

Anyway. last year I wasn't entitled and my partner was. £100 was paid into our joint account and we both took "ownership" of £50 each and declared it.
Online banking tax and fees section shows £100 interest associated with our joint account regardless whether I log in using my customer number or my partner log in using hers.
I requested proper paper tax certificate, so hopefully will find out soon whether I got £50 or £0.

badger09

I doubt there is any mechanism in the bank/building soc system for reporting to HMRC, to specify that a Fairer Share payment paid into a joint account belongs to only one of the holders. It will automatically be reported as a credit to the joint account. If individuals are adversely affected by this, I suspect they’ll have to take it up with HMRC. 
Happy to be proved wrong. 

badger09

Any chance 2 NationwideFairer Share threads could be merged? 

I think 2 have already been merged recently

WillPS

badger09 said:

I doubt there is any mechanism in the bank/building soc system for reporting to HMRC, to specify that a Fairer Share payment paid into a joint account belongs to only one of the holders. It will automatically be reported as a credit to the joint account. If individuals are adversely affected by this, I suspect they’ll have to take it up with HMRC. 
Happy to be proved wrong. 

Presumably the 'interest' could be booked against the savings account or mortgage account in that case?

Edit - it appears from the other thread this isn't what happens: post on other thread

I'm happy to be proven wrong on this.

badger09

WillPS said:

badger09 said:

I doubt there is any mechanism in the bank/building soc system for reporting to HMRC, to specify that a Fairer Share payment paid into a joint account belongs to only one of the holders. It will automatically be reported as a credit to the joint account. If individuals are adversely affected by this, I suspect they’ll have to take it up with HMRC. 
Happy to be proved wrong. 

Presumably the 'interest' could be booked against the savings account or mortgage account in that case?

Edit - it appears from the other thread this isn't what happens: post on other thread

I'm happy to be proven wrong on this.

It’s quite late for me, but doesn’t that post effectively say what I said? IE the £100 paid into a joint account will be reported as such & HMRC will assume a 50/50 split unless individuals contact them. 

WillPS

badger09 said:

WillPS said:

badger09 said:

I doubt there is any mechanism in the bank/building soc system for reporting to HMRC, to specify that a Fairer Share payment paid into a joint account belongs to only one of the holders. It will automatically be reported as a credit to the joint account. If individuals are adversely affected by this, I suspect they’ll have to take it up with HMRC. 
Happy to be proved wrong. 

Presumably the 'interest' could be booked against the savings account or mortgage account in that case?

Edit - it appears from the other thread this isn't what happens: post on other thread

I'm happy to be proven wrong on this.

It’s quite late for me, but doesn’t that post effectively say what I said? IE the £100 paid into a joint account will be reported as such & HMRC will assume a 50/50 split unless individuals contact them. 

Yes, it does, I was correcting myself rather than you. I'll add some strikethrough to make this clearer.

moneysaver

Hi,

     Are people still being informed if they qualify for the bonus?  I seem to qualify but have not heard anything yet.

Moneysaver