Does Bank Cashback, Bank rewards and NS&I Savings Certificates count as interest?

5
Posted 15th Jan
I am filing in my self assestment tax return.

It asks to list all interest from banks. Do the following count as interest?

  • Bank Cashback rewards (E.g. From Santander).
  • Bank Reward payments (e.g. from Halifax, Barclay Blue rewards)
  • NS&I Savings Certificates (e.g. RPI Index-linking certificate)

I've googled extensive and seen contradicting info. Even a help fourm aimed at Accountants had different info!
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My take on it

No - Bank Cashback rewards (E.g. From Santander).
No - Bank Reward payments (e.g. from Halifax, Barclay Blue rewards)
Yes - NS&I Savings Certificates (e.g. RPI Index-linking certificate)
Edited by: "chocci" 15th Jan
It's all classed as income I reckon, so I would say yes.
Cashback is considered as a discount on goods and services, hence not taxable.
the interest on N&I savings certificates (inflation linked) are not taxable as shown below

nsandi.com/ind…tes

"Are Index-linked Savings Certificates still a good investment?Index-linked Savings Certificates are still a popular investment with a unique combination of index-linking plus a small amount of additional interest – all tax-free."

the reward from the halifax bank is taxable but they have already paid the tax and so the reward is net of tax. you have to pay more tax if you are a high rate tax payer. you need to ask them for a tax certificate. we have this account and have to request a tax certificate each year as we are high rate tax payer. you can download the tax certificate from your account.

cashback reward from santander is probably considered discount as someone has already said, but i am not certain about this one. but i think it is a reasonable argument for not paying tax on that.
If you log on to your online banking you should be able to print a statement of all the interest your bank has paid to you in the last tax year.
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