Nationwide’s £50 payments reported to HMRC for customers

Nationwide Building Society has issued a warning to customers about potential tax implications related to recent payments. The society is distributing £50 “thank you” payments to thousands of customers following its acquisition of Virgin Money. Nationwide clarified that these payments will be reported to HM Revenue & Customs (HMRC), but they will not deduct taxes from the payouts. The tax treatment depends on whether members are investors, borrowers, or both at the time of payment. Customers may need to pay income tax on the £50, depending on their overall interest earnings in the tax year. If customers receive an interest certificate from Nationwide, it will cover only the £50 payment, and they can find a full interest certificate online. Nationwide emphasizes that it is the world's largest building society and recommends that customers seek their own tax advice if they have concerns. The society is currently reviewing how the payment could be taxed for those who hold eligible mortgages. They will provide updates as more information becomes available.