Tax treatment of Natwest Current Account Rewards
Posted: May 6th, 2019, 10:28 am
Natwest is offering switching incentives to move to its Premier current account (https://personal.natwest.com/premier-ba ... ounts.html) and I'm considering a move since I think the 2% reward on many household bills, even after deducting the £2 per month fee, would still make me better off than my Halifax Reward account.
One thing that I'm wondering about though is what is the tax treatment for those 2% rewards? Do they get reported as interest-in-kind on the consolidated tax certificates, e.g. my Halifax account does report it's £3 a month reward as a gross interest payment so tax is due but then that is a flat monthly reward not a rebate on spending, or does the rebate-on-spending nature of the Natwest rewards somehow put them in a different category as far as HMRC is concerned?
I know that we're talking very small amounts of money here, or at least we are when we plug in the figures for my household expenditure, but I might as well look at the most accurate picture that I can when considering my move.
- Julian
One thing that I'm wondering about though is what is the tax treatment for those 2% rewards? Do they get reported as interest-in-kind on the consolidated tax certificates, e.g. my Halifax account does report it's £3 a month reward as a gross interest payment so tax is due but then that is a flat monthly reward not a rebate on spending, or does the rebate-on-spending nature of the Natwest rewards somehow put them in a different category as far as HMRC is concerned?
I know that we're talking very small amounts of money here, or at least we are when we plug in the figures for my household expenditure, but I might as well look at the most accurate picture that I can when considering my move.
- Julian
