Halifax rewards historically were treated as bank interest. However unlike most bank interest it is still having basic rate tax deducted at source. If we put it in as taxed interest the client gets the tax back.
Is this still right or where else should we report it in the returns?
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Not the most reliable of sources, but Google turned up this:
http://www.thisismoney.co.uk/money/saving/article-3595338/HMRC-robs-save...
Seems plausible.
Sod off Justin!
It is savings income in every respect except that it is not covered by the PSA. The bank are treating it correctly and your client should not get the tax back unless the income is within their personal allowance.
This at least is HMRC's view and therefore the view taken by the bank. I suppose there might be scope for challenging it if the £1.25 a month is worth kicking up a fuss over but I haven't looked into it in detail.
It is savings income in every respect except that it is not covered by the PSA.
Not really as it's paid in return for undertaking spcified transactions - direct debits and crediting a certain amount. The website is unhelpful and doesn't make any refeernce to non-taxpayers/savings allowance.
Useful re my 1.5 accounts with Bank of Scotland as we earn it on both of them.
One is the joint housekeeping account and the other is my personal account (I am aiming to go for the record for not moving bank, now over 41 years with the same branch) which funds the housekeeping account
Given how these two are already structured it always got me thinking that maybe there was mileage in say setting up a number of the accounts and firing the same money round and round the circle by d/d.
There are four of us, myself, wife and two adult children, so that gives six doubles, three trebles and an accumulator in a Yankee (sign of misspent youth), 10 combinations. If we discard joint account with just the kids (I am not that stupid) , there are nine combinations possible ,plus one in my name (existing) and one in wife's name as individual , so 11 unique account combinations @ £5= £55 per month for very little work once set up.
There are four of us, myself, wife and two adult children, so that gives six doubles, three trebles and an accumulator in a Yankee (sign of misspent youth), 10 combinations. If we discard joint account with just the kids (I am not that stupid) , there are nine combinations possible ,plus one in my name (existing) and one in wife's name as individual , so 11 unique account combinations @ £5= £55 per month for very little work once set up.
...and not just the Halifax that does it so if you can be bothered to set it up and keep to the other rules (a couple of DD's or SO's each month) possible, but a fag to set up and monitor for changes.
My understanding is that it's not within the Savings Allowance and goes in as "Other Income"
There are four of us, myself, wife and two adult children, so that gives six doubles, three trebles and an accumulator in a Yankee (sign of misspent youth), 10 combinations.
What ?
Four trebles.
Eleven bets.
How did I miss this in 2017 ?
In my humble opinion, it's a carp idea, involving what at one time we would have called Sch D, Case VI income.
Perhaps covered by your shiny new £1000 tax allowance.
I have revisited this (I am sure I do every tax year!)
The rewards payment is classed as an 'annual payment' under ITTOIA2005 Part 5, Chapter 7 (S683) according to various websites.
The £1K trading allowance covers "income not otherwise charged" arising under ITTOIA2005 Part 5, Chapter 8. Which states at S687 (2) that an annual payment is not covered under this Chapter.
So my conclusion is the rewards payment is taxable in full as it is an annual payment and so you can't use the £1K against it.