Anonymous
Share this content
10

Reward account

Can new income relief cover reward account income?

Didn't find your answer?

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 )

Replies (10)

Please login or register to join the discussion.

avatar
By tonycourt
28th Aug 2018 16:04

A better description of the arrangement would help!

What sort of income, interest?

What's the miscellaneous income relief?

Thanks (0)
Replying to tonycourt:
avatar
By seonaid anderson
28th Aug 2018 22:44

Income - Bank account rewards excluded from personal Savings allowance as not being interest

Misc income allowance S783AB FA(No2) 2017

Thanks (0)
Replying to seonaid anderson:
By SteveHa
29th Aug 2018 08:29

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.

Thanks (0)
Replying to SteveHa:
avatar
By Wanderer
29th Aug 2018 08:54

Quote:

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.

Think it's been established that Halifax Rewards aren't, in fact, treated as interest.
Thanks (0)
Replying to Wanderer:
By SteveHa
29th Aug 2018 09:04

Where did you get Halifax from - when I read it it just says "bank".

Thanks (0)
Replying to SteveHa:
avatar
By Wanderer
29th Aug 2018 09:07

You said "Rewards typically". I gave an example when it doesn't.

Thanks (0)
avatar
By seonaid anderson
29th Aug 2018 12:00

Bit more detail -
£2 monthly fee to pay
gets back a percentage of payments made by direct debit to certain suppliers.

Reported rewards as other income last year, basic rate deducted at source. Amounts tiny but client feels hard done by that he pays Higher rate tax with apparently no relief for fees paid.. I just wondered if it was reasonable to treat as covered by one of the new £1000 reliefs?

Thanks (0)
avatar
By alec247
30th Aug 2018 12:34

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.

Thanks (1)
Replying to alec247:
avatar
By tonycourt
30th Aug 2018 18:27

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.

Thanks (0)
Replying to tonycourt:
avatar
By Wanderer
30th Aug 2018 18:40

Quote:

Exactly my thoughts but I was confused by the suggestion that tax had been deducted. Seems highly unlikely it was.

IF, yes it hasn't been confirmed but IF, it's a Halifax Reward account then these have tax deducted.
Thanks (0)
Share this content

Related posts