Nationwide, the UK's largest mutual building society, has announced that its £100 Fairer Share bonus payment will be reduced for some recipients. The payments, worth £100, are scheduled to be distributed from Wednesday, June 10. However, customers are being warned that the payment is treated as interest for UK income tax purposes and may be subject to taxation.
Tax Implications for Recipients
Nationwide, which has branches in Birmingham, clarified that it is not required to deduct any tax from the payment but will report it to HM Revenue & Customs (HMRC). The building society stated: "We are not required to deduct any tax from the payment, but we will report it to HM Revenue & Customs (HMRC). You may be liable for income tax on the payment, depending on whether the total amount of interest you have received in the tax year is more than your Personal Savings Allowance. You can find out more about your Personal Savings Allowance at nationwide.co.uk/psa."
How the Payment Will Be Made
The provider will deposit the money into the customer's Nationwide current account via electronic transfer. If a customer holds more than one current account with the building society, Nationwide may choose any of those accounts for the payment. For customers with a sole account, the payment will be made into that account; otherwise, it will be paid into a joint account. The payment will appear on the account statement as "Nationwide Fairer Share Payment."
Nationwide emphasized that it will not make the payment in any other way, and customers without an open Nationwide current account at the time of payment will not be eligible. Additionally, the payment will not be made into accounts held under different trading names, such as Virgin Money or Clydesdale.
Further Information
Nationwide advises customers to seek their own tax advice if in doubt, as the building society takes no responsibility for tax advice. The tax information is based on current law and HMRC practice, which may change. For more details, customers can visit hmrc.gov.uk.
