What is the tax liability for the rewards given by banks to current account holders instead of interest? Some also now pay them on credit cards.
Am I right in thinking that this would be classed as a gift, similar to receiving rewards from a supermarket etc and therefore not liable to income tax, and no need to record it on a self assesment form?
I have various products with the co-op, and I receive a payment from them each year based on how much money is in the bank, what I spent in the shop etc, and this is subject to tax and has to go on the tax return. So I would ask the bank concerned what the position is with their particular payment.
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Jenny
Responses are my opinion based on the information provided. All information should be thoroughly checked before being relied on.
Paid net of tax! Well you know, I had a sneaky feeling that's how it worked but when I spoke to the Halifax they told me there was no tax!
Just shows that you can't trust anything large firms tell you over the phone, especially banks!
I also find it amazing that as an existing customer I struggled to find the information about it online but then if you go to the pages mainly directed at new customers there it all is!
I didn't even know it was the Halifax. Maybe my next advert should say 'telepathic bookkeeper' :o) Make sure the link is applicable because I can't help wondering why they said 'no tax'.
