A spokesperson for hmrc declined to comment on Blue Rewards specifically but said its view on taxing cashback was unchanged.
Sign up to the Be Clever With Your Cash email list.Those who switch to one of the top-pick.Barclays claims that customers can earn up to 84 per year Credit: Barclays.Those who are higher and additional rate tax payers may be liable for the additional amounts.So that 132 over a year makes it better than most other offers.Co-ops Everyday Rewards account gives eligible customers 4 per month, but also applies a 20pc tax before making the payment.If it's monthly rewards you are after another alternative.Customers also get one per cent cashback when they shop with certain retailers.Cashback will also be doubled to 2 per cent.But will I keep it once those double payments have ended?
A tax quirk means the benefits of the rewards account from Barclays are dramatically reduced.
The amount of tax customers may need to pay would vary depending on how much they earn.
If you already fill in a self-assessment tax form then any income should be declared.Well send information about your Barclays Blue Rewards to you using texts, email, Cloud It and other digital methods.The Blue Rewards scheme requires a minimum 800 monthly deposit and at least one active direct debit.Rewards tax, mSE News story for full info.And watch out, pizza express e gift voucher the account comes with fairly hefty penalties for straying into an overdraft.The add-on feature available on its Bank Account and Premier Accounts costs 3 per month and offers cash loyalty rewards, including a 14 per month boost for having two active direct debits.The bank says the double-up perk could be worth 384 to customers.How do Barclays Blue Rewards compare?But if you do have a Barclays account and are determined to stay with it, Blue Rewards are a no-brainer.
This only applies to interest from savings or current accounts, so the PSA does not apply to cash perks.
Well, if theres a decent switching bonus that pays more than 48 I absolutely will.
The reduction would result from the account fee and tax - but Barclays and the taxman disagree about whether tax is due.