A £50 bonus payment being given to Nationwide customers could land you with a tax bill, the bank has warned. Nationwide recently announced it will hand 12 million customers £50 each as part of a ‘Big Thank You’ after it bought out Virgin Money. Anyone who had opened an account before September 30, 2024 and had at least £100 in their account in the 12 months leading up to that date, or owed at least £100 on their mortgage, would qualify for the free £50, Nationwide said.

Those who had at least ‘one qualifying transaction’ or who completed a switch to Nationwide before that date could also qualify, the bank said. But it’s possible that you could end up being taxed on the £50 when it’s paid out – which is due by April 30, Nationwide said.

That’s because the bank will report it to HMRC, which could make it liable for income tax on the payment, depending on your other circumstances and if you exceeded the Personal Savings Allowance for your tax band. In its FAQs on the payment, Nationwide set out how it works.

It said: “The payment is a one-off share of our profits to members. The treatment of the payment for UK tax purposes depends on whether you are an investing, a borrowing member, or both, when we make it.

“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 receive in the tax year when the payment is made is more than your Personal Savings Allowance.

“If you receive an interest certificate from us, this will only cover The Big Nationwide Thank You payment. If you’re looking for a full tax year interest certificate for one or more of your accounts, you can find this on the internet bank.”

The bank goes on to say that it is currently checking how those with just a mortgage who receive the payment are treated by the tax man.

The bank said: “If you only hold an eligible mortgage with us when we make the payment, we are taking steps to confirm how it is treated for UK income tax purposes, and you may be liable for tax. We will update this page once we have more information to share.

“This tax information is based on our understanding of current law and HMRC practice applying to UK resident taxpayers. Current law and HMRC practice may change.

“Nationwide takes no responsibility for tax advice and if you are in any doubt, you should seek your own tax advice.”