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Posted Tue, 03 Jan 2023 18:18:21 GMT by Tony Ingleton
Chip has a on-line savings account that pays a monthly bonus rather that interest - a specific term on the account. I am assuming that this is treated as interest for tax purposes because: 1. It is entirely dependent on the account balance 2. It is paid regularly (monthly) 3. It has a defined contractual rate 4. It is income not a return of capital Please could someone confirm? Thanks!
Posted Mon, 16 Jan 2023 15:07:21 GMT by HMRC Admin 19

The taxation of such payments depends on whether they are treated as annual payments or not. You can see guidance below that contains a link to examples:

SAIM8020 - Annual payments: meaning of annual payment

Thank you.

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