Client pays fees on reward account - can the income therefore be covered by the miscellanous income relief.
( apologies if this has been asked already, I couldn't see it )
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A better description of the arrangement would help!
What sort of income, interest?
What's the miscellaneous income relief?
You mean Sch 2 S783AB, which explicitly states it applies to "income not otherwise charged". Rewards typically do not fit in this category, often times being treated as interest.
Not enough info in the question.
Think it's been established that Halifax Rewards aren't, in fact, treated as interest.You mean Sch 2 S783AB, which explicitly states it applies to "income not otherwise charged". Rewards typically do not fit in this category, often times being treated as interest.
It sounds similar to a Santander 123 account - the payments are treated as 'discounts' based on the amount of payments made and AIUI aren't subject to tax. They're analogous to credit card 'rewards' or points.
If the reward was a fixed fee payable just for operating the account then it would be subject to tax but not treated as interest.
Exactly my thoughts but I was confused by the suggestion that tax had been deducted. Seems highly unlikely it was.
Slightly worrying that the OP declared the "discounts" as income.
IF, yes it hasn't been confirmed but IF, it's a Halifax Reward account then these have tax deducted.Exactly my thoughts but I was confused by the suggestion that tax had been deducted. Seems highly unlikely it was.