Nationwide fairer share £100 payout

lr1277

My mum has a Nationwide account. She has not given them an email address.

Soon after people got emails about the payout, she received a letter with the same information. Though I don't know exactly when she received the letter. The money was put in her account on Thursday.

HTH

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.

so after all you no longer disagree judging by your latest comments in both Fairer Payment threads?

WillPS

jadex said:

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.

so after all you no longer disagree judging by your latest comments in both Fairer Payment threads?

Yep, happy to have been disproven now