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Is a certificate of interest given for OVO's Interest Reward?

  • 4 November 2017
  • 4 replies
  • 532 views

Does anyone know if a certificate of interest will be supplied when your account is in credit and you are a tax payer?
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Best answer by Mw2870 5 November 2017, 19:30

Hi Kit,

That's an interesting question.

**I'm no tax expert**

Could it be argued that the Interest Award is simply a discount off your overall annual bill?

So if your annual bill comes out at £600 a year, but your DD is £60 a month and have earned (very rough) figures £3.60 Interest Reward. You can say that really your energy bill was £596.4 for the year. Your account is £123.60 in credit, which is rightfully yours to withdraw.

I could only see problems occurring if you were withdrawing more money than you had paid in. But in my example you had paid in £720 and withdrawn £123.60
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Userlevel 5
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Hi Kit,

That's an interesting question.

**I'm no tax expert**

Could it be argued that the Interest Award is simply a discount off your overall annual bill?

So if your annual bill comes out at £600 a year, but your DD is £60 a month and have earned (very rough) figures £3.60 Interest Reward. You can say that really your energy bill was £596.4 for the year. Your account is £123.60 in credit, which is rightfully yours to withdraw.

I could only see problems occurring if you were withdrawing more money than you had paid in. But in my example you had paid in £720 and withdrawn £123.60
Thanks for that, just didn't want to be dragged through the press for tax avoidance.
Userlevel 5
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No problem!

As I say I am no Tax Advisor, nor claim to be an expert but i'm sure the guys at OVO have run this by their legal department

I found this post on the MSE forums from an OVO official representative:
"Our interest reward scheme is a discount so it isn't taxable."
http://forums.moneysavingexpert.com/showthread.php?t=4899596
Userlevel 5
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@Mw2870 is right! The OVO Interest Reward isn't taxable and is just offer by OVO as a discount. 🙂

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