Halifax Kids Saver and Monthly Saver

jatinmistry_uk · 17 June 2018 at 1:11PM

I have two kids and they have Kids Saver and Kids Monthly Saver with Halifax.

Everything was fine until last year but last week I received the statement and annual interest tax voucher under my name. There was no mention of the kids anywhere. I tried for few days and could not get through to them on the phone and so took half a day off and visited them in the branch.

Despite mention the issue and raising concern, all I have been told is all is OK and as my kids are under the age of 18 and cannot operate the account themselves, it doesn't really matter if the acccount is under their name or mine (guardian). The also said it's something to do with new laws/rules came out recently. I mentioned them few times that this does not make sense and why they would issue the statement and annual interest tax voucher under my name? Sure this would have impact with Inland Revenue and would it not classed a fraud as me having kids account knowingly? But they kept saying it's all fine as kids are underage and it's new law so I then gave up.

Does anyone else have come across this or know about this? Any idea where can I go from here?

Thank you.

xylophone · 17 June 2018 at 2:41PM

http://static.halifax.co.uk/assets/pdf/savings/pdf/savings-account-conditions.pdf

Have a look at the information p13 - 18 above.

It is clear that these accounts are held in trust for the child so that the interest arising belongs to the child.

However, where a parent has donated the capital to his minor unmarried child, even though the interest belongs to the child, if it amounts to over £100 per annum per child, it is taxable on the parent.

This "£100 rule" does not apply to tax privileged accounts like CTF/JISA.

https://www.moneysavingexpert.com/savings/child-savings-tax-free

jatinmistry_uk · 17 June 2018 at 4:31PM

Thank you for the reply and I have read it. Although I understand but the reason why I am puzzled is the account have been held since last 14 years (same as my kids age)! The bank statement, bank account, annual tax summary always has been coming under their own name for all the time until now. It's just all of sudden, the recent statement and tax summary came under my name and there is no mention of kids anywhere? This is really difficult as I have two kids and each have regular and monthly saver so had to go through old paperwork to identify which account belongs to who! Should all this paperwork not have cross reference that it belongs to child and I am guardian/parent?

I also understand amount taxable interest but I thought that amount is £1000 and not £100?

eskbanker · 17 June 2018 at 5:37PM

jatinmistry_uk wrote: »

I also understand amount taxable interest but I thought that amount is £1000 and not £100?

Both figures are right in a way, but they represent different things!

The MSE article linked by xylophone does explain the difference, but essentially if the interest earned by a child on money given by a parent exceeds £100 per parent then it's taxed as if it was still the parent's money (to avoid parents using children as a tax shield). If the parent's total savings interest (including the child's) is still below the personal savings allowance of £1000 (£500 for higher rate taxpayers) then there is no tax due on it....

Halifax Kids Saver and Monthly Saver

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