Nationwide warns about tax on £50 bonus payments

Nationwide is giving a £50 bonus to its customers as a thank you gift. The bank announced that about 12 million customers will receive this payment. To qualify, customers must have opened an account before September 30, 2024, and had at least £100 in their account or owed at least £100 on their mortgage during the past year. The bonus payment will be made by April 30. However, Nationwide has warned that customers might have to pay tax on this £50. The bank will report the payments to HM Revenue and Customs (HMRC). Depending on each person’s financial situation, they might be liable for income tax, especially if they exceed the Personal Savings Allowance. Nationwide explained that the payment comes from their profits and how it is taxed can vary. It could depend on whether a customer is an investor, a borrower, or both. It is important to note that Nationwide will not automatically take any tax out of the bonus. Customers who have only a mortgage with Nationwide will see guidance on how this payment will affect their tax status in the future. The bank urges anyone unsure about their tax situation to seek professional advice. They also emphasize that tax laws can change, so it's essential to stay informed.