Could Your Bank Reward Get You In Trouble With The Taxman?

If you receive bank rewards from Barclays, Halifax or Co-op, beware that these are forms of taxable income. Unfortunately, they don’t fall within HM Revenue & Customs’ new Personal Savings Allowance, as they are not interest.

If you receive rewards from Halifax or Co-op, then tax should be deducted, but you still have to declare them on your tax return (if you prepare one). If you are a non-taxpayer, you could be entitled to a refund of the tax deducted. If you are a higher rate taxpayer, additional tax could be due. However, if you receive the reward from Barclays, then no tax is deducted, so you will have tax to pay, unless you are a non-taxpayer.

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