Halifax Reward and the new Tax free Savings

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  • Simon7685
    Simon7685 Posts: 1,115 Forumite
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    Having just read through this thread my brain is now more fried than it was to start with:rotfl:

    So I have 2 Reward accounts with Halifax, I get that the payments will remain at £5 for each account. So when I complete my tax return in April do I count the £10 a month I get as interest earned from savings? and does the £120 for the coming year count towards my PSA?

    Sorry to be a bit thick, I'm sure the answers are already in the thread but I'm putting it down to a senior moment as can I find it? No I can't:o

    Thanks in advance
  • Steve_xx
    Steve_xx Posts: 6,976 Forumite
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    Simon7685 wrote: »
    Having just read through this thread my brain is now more fried than it was to start with:rotfl:

    So I have 2 Reward accounts with Halifax, I get that the payments will remain at £5 for each account. So when I complete my tax return in April do I count the £10 a month I get as interest earned from savings? and does the £120 for the coming year count towards my PSA?

    Sorry to be a bit thick, I'm sure the answers are already in the thread but I'm putting it down to a senior moment as can I find it? No I can't:o

    Thanks in advance
    The monthly payment is actually £6.25. HBOS send £1.25 to HMRC and so that discharges the tax liability if you are a basic rate taxpayer and it seems that HBOS plan to continue sending the £1.25 monthly to HMRC. Therefore, if you are a basic rate taxpayer then I guess you can discard it for PSA purposes unless inclusive of the £60 per year for having each HBOS account you don't exceed the PSA allowance. In which case I guess you will have to reclaim the tax paid from HMRC.
  • masonic
    masonic Posts: 23,245 Forumite
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    Biggles wrote: »
    (In any event, the figure is now £750pm, not £1,000)
    Did the £750 minimum pay in get applied to the terms of the credit card, or just the current account for the £5 paid into the latter?

    I thought the Clarity Reward Card terms were different, as supported by the current terms available on the Halifax website, which are identical to those Steve quoted.
  • zagfles
    zagfles Posts: 20,318 Forumite
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    Steve_xx wrote: »
    The monthly payment is actually £6.25. HBOS send £1.25 to HMRC and so that discharges the tax liability if you are a basic rate taxpayer and it seems that HBOS plan to continue sending the £1.25 monthly to HMRC.
    Do they? Where did you get that from?
    Therefore, if you are a basic rate taxpayer then I guess you can discard it for PSA purposes unless inclusive of the £60 per year for having each HBOS account you don't exceed the PSA allowance. In which case I guess you will have to reclaim the tax paid from HMRC.
    What do you mean?

    If it's an "annual payment" then you wouldn't be able to reclaim the tax if you are a basic rate taxpayer. It'll be like now. Annual payments aren't counted in the PSA as I understand it.

    If it's "interest" the Halifax would pay it gross and won't send anything to HMRC. But they might reduce the gross amount to £5.
  • ceredigion
    ceredigion Posts: 3,709 Forumite
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    zagfles wrote: »
    Do they? Where did you get that from? What do you mean?


    .


    "
    *£5 reward paid in the following calendar month if in the previous calendar month you pay in to your account £750 or more and pay out of your account a minimum of two different direct debit instructions and keep your account in credit all calendar month. You also need to keep your account open or not change it to a different type of current account before the reward payment is due to be paid into your account. This payment is ‘net’ of income tax, which means we pay it after taking off income tax at the rate set by law (currently 20%). If you’re a higher-rate taxpayer, you may have to pay extra income tax on the reward payment. (The gross amount is £6.25. This is the amount before income tax is taken off.)
    "
  • zagfles
    zagfles Posts: 20,318 Forumite
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    ceredigion wrote: »
    "
    *£5 reward paid in the following calendar month if in the previous calendar month you pay in to your account £750 or more and pay out of your account a minimum of two different direct debit instructions and keep your account in credit all calendar month. You also need to keep your account open or not change it to a different type of current account before the reward payment is due to be paid into your account. This payment is ‘net’ of income tax, which means we pay it after taking off income tax at the rate set by law (currently 20%). If you’re a higher-rate taxpayer, you may have to pay extra income tax on the reward payment. (The gross amount is £6.25. This is the amount before income tax is taken off.)
    "
    Yes that's what they do NOW. I was asking what evidence the PP had that they intend to continue doing that after April!
  • Steve_xx
    Steve_xx Posts: 6,976 Forumite
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    zagfles wrote: »
    Yes that's what they do NOW. I was asking what evidence the PP had that they intend to continue doing that after April!
    The evidence is contained within post 16 here:

    http://forums.moneysavingexpert.com/showthread.php?p=70076257
  • ceredigion
    ceredigion Posts: 3,709 Forumite
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    zagfles wrote: »
    Yes that's what they do NOW. I was asking what evidence the PP had that they intend to continue doing that after April!



    The extract is from the T&C's, That became effective from the 22nd of November 2015. They were revised because of PSA and if we assume they wont alter them again they will be current on the 5th of April.
  • zagfles
    zagfles Posts: 20,318 Forumite
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    Steve_xx wrote: »
    The evidence is contained within post 16 here:

    http://forums.moneysavingexpert.com/showthread.php?p=70076257
    The link in that post doesn't work.
  • zagfles
    zagfles Posts: 20,318 Forumite
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    ceredigion wrote: »
    The extract is from the T&C's, That became effective from the 22nd of November 2015. They were revised because of PSA and if we assume they wont alter them again they will be current on the 5th of April.
    OK, so it's an assumption that they won't change...
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