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Tax treatment of Natwest Current Account Rewards

Julian
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Tax treatment of Natwest Current Account Rewards

#219738

Postby Julian » 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

PinkDalek
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Re: Tax treatment of Natwest Current Account Rewards

#219743

Postby PinkDalek » May 6th, 2019, 10:41 am

If one and the same, not taxable per scrumpyjack over at Taxes:

viewtopic.php?f=49&t=12502&p=150643&hilit=Rewards#p150643

Julian
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Re: Tax treatment of Natwest Current Account Rewards

#220358

Postby Julian » May 9th, 2019, 10:42 am

Thanks PD, your helpful reply and link much appreciated. Sorry about the slow acknowledgement, for some reason I wasn't getting email notifications of replies.

- Julian

P.S. I liked your "HMRC are (un)appealing" quip in your post on that linked thread :)


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