Monthly bank charges

Nico60

As I pay tax on the interest I earn on my savings with certain banks, can I offset this a little by claiming back the bank charges I pay monthly just to have the account?

artyboy

Wouldn't that be nice 🤣

(it's a "no" by the way)

Nico60

https://forums.moneysavingexpert.com/discussion/comment/82003942#Comment_82003942

I thought that, but it was worth a try! 😂

Sam_666

You can do that if you run a bussines.

joeypesci

I don't even understand why you have to pay bank charges on an account. Surely the way the bank runs is they are using your money to loan to others. Unless I'm totally not understanding how banks work.

Barkin

https://forums.moneysavingexpert.com/discussion/6668946/monthly-bank-charges

Do you pay a monthly fee 'jist to have the account' ? (which bank/account is this?)

Or do you pay a monthly fee in exchange for packaged extras - travel insurance, breakdown cover, mobile 'phone insurance etc ?

CliveOfIndia

If it's a business account then yes - you can claim it as a business expense. But for personal accounts, no.

And bank charges are different to tax on interest - you need to differentiate the two.

But for a personal account, just make sure any charges you pay are more than offset by any perks you receive - otherwise, just switch to a standard fee-free account, of which there are many.

35har1old

https://forums.moneysavingexpert.com/discussion/comment/82006185#Comment_82006185

If you have one of Santander accounts which charge a fee but does pay credit interest and cash back on a few DD.

I understand where the OP is coming from you have to pay the fee to obtain the interest

masonic

https://forums.moneysavingexpert.com/discussion/comment/82006614#Comment_82006614

Wouldnt it be nice if individuals could deduct expenses from their income before paying tax only on what is left... council tax, mortgage interest, rent, mileage etc. All potentially necessary to work in a particular area.

Like the account fee, these costs could be argued provide benefits beyond the ability to earn an income.

However, Santander could make the account more tax efficient by not charging a separate fee and instead reducing the amount of interest credited where enough has been earned. Perhaps waiving the fee where a certain average balance was maintained over the period and paying interest above that threshold.