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  • FIRST POST
    • RG2015
    • By RG2015 4th Dec 19, 8:08 AM
    • 1,767Posts
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    RG2015
    Will the new NatWest Rewards be taxable?
    • #1
    • 4th Dec 19, 8:08 AM
    Will the new NatWest Rewards be taxable? 4th Dec 19 at 8:08 AM
    NatWest are changing their Rewards account. This currently pays 2% cashback on various household bills but from 1st Feb 2020 will pay 1 per month for logging into their mobile app and 4 per month for paying two DDs for at least 2 each. The monthly fee remains at 2.

    Will the new monthly payments of up to 5 be taxable as income?

    https://www.moneysavingexpert.com/news/2019/11/natwest-and-rbs-rewards-cashback-to-change-from-february---what-/
Page 1
    • laticsforlife
    • By laticsforlife 4th Dec 19, 8:23 AM
    • 1,227 Posts
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    laticsforlife
    • #2
    • 4th Dec 19, 8:23 AM
    • #2
    • 4th Dec 19, 8:23 AM
    I seem to remember that the old 5 per month Halifax? reward was treated as interest so theoretically reportable as per other income (so yes, possibly).
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    • RG2015
    • By RG2015 4th Dec 19, 9:27 AM
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    RG2015
    • #3
    • 4th Dec 19, 9:27 AM
    • #3
    • 4th Dec 19, 9:27 AM
    I seem to remember that the old 5 per month Halifax? reward was treated as interest so theoretically reportable as per other income (so yes, possibly).
    Originally posted by laticsforlife
    Thank you. Do you recall if that made it part of the annual psa?

    PS. Hmm, this mse article from 2016 suggests not. Does anyone know if this is still correct?

    https://www.moneysavingexpert.com/news/2016/07/halifax-barclays-or-co-op-bank-customer-you-may-need-to-pay-tax-on-your-rewards/
    Last edited by RG2015; 04-12-2019 at 9:31 AM.
    • Dazed and confused
    • By Dazed and confused 4th Dec 19, 9:41 AM
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    Dazed and confused
    • #4
    • 4th Dec 19, 9:41 AM
    • #4
    • 4th Dec 19, 9:41 AM
    Halifax Reward payments are not interest and as such are not eligible to be taxed at either of the 0% tax rates.

    I think only Nat West will be able to answer this with any certainty.
    • RG2015
    • By RG2015 4th Dec 19, 9:42 AM
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    RG2015
    • #5
    • 4th Dec 19, 9:42 AM
    • #5
    • 4th Dec 19, 9:42 AM
    Here is another report from 2017 which states that is taxable and that the bank is not required to deduct tax at source.

    https://www.taxadvisermagazine.com/article/savings-income-issues-including-bank-accounts-paying-‘rewards’
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