Some customers of the Nationwide under their Fairer Share Payment scheme have recently been paid a £100 bonus. But is this taxable income?
According to the Nationwide’s website, to be eligible, customers must have one of the following product combinations:
A current account and a savings account which both qualify
A current account and a mortgage which both qualify
Nationwide's website gives details of their interpretation how this is treated for tax purposes. Their view is that this is taxable as savings income. If HMRC accept this view, this then it would mean that it will be treated in the same way as any other interest meaning it will be paid gross but is taxable. For most taxpayers this would be covered by the Saving Allowance of £1,000 for basic rate taxpayers and £500 for higher rate taxpayers. All taxpayers who pay tax at the additional rate will taxed on it, as they do not have the benefit of a Savings Allowance.