Nationwide Building Society members who received the latest £100 Fairer Share payment may need to review their tax obligations and potentially contact HM Revenue and Customs (HMRC). The warning comes after Martin Lewis addressed the issue on his BBC podcast, clarifying that the payment is treated as interest for tax purposes.
What Is the Fairer Share Payment?
The Fairer Share scheme distributes Nationwide's profits among loyal members. There have been four rounds of payments, with the latest instalment arriving in customer accounts between 10 and 30 June 2026. To be eligible this time, customers needed a Nationwide current account combined with either a savings account or a mortgage, plus specific account activity in recent months. Nationwide has stated that most payments have now been distributed.
Tax Implications Explained
Martin Lewis was asked on his BBC podcast about the tax implications of the £100 payment, particularly for a joint account holder. He explained: "The Nationwide Fairer Share payment is a £100 payment this year and in previous years. Effectively, it's a loyalty bonus for existing Nationwide customers who fulfil certain criteria. What is interesting about this particular payment is it does count as interest."
Lewis contrasted this with bank switching bonuses, which are not taxable as they are incentives rather than rewards for existing customers. He said: "If you get a bank switching bonus, that is seen as an incentive as opposed to a reward for an existing customer, so that is not taxable, the same as cashback on credit cards is not taxable. But because this is effectively a benefit of a mutual organisation and is a membership payout, that is taxable, and it's taxable as interest."
Who Needs to Pay Tax?
Lewis clarified: "For those people who earn above their personal savings allowance, of £1,000 a year as a basic rate taxpayer or £500 a year as a higher rate taxpayer, you would have to pay tax on the £100. If you earn less, you won't have to pay tax on the £100 or if you're a non taxpayer, you won't have to pay tax on the £100."
For joint accounts, the payment is split equally. Lewis said: "Like if you have joint savings, the interest payment is demarked 50/50, the Nationwide Fairer Share in a joint bank account is demarked 50/50. I haven't asked Nationwide if that is what they report to HMRC but that is exactly what the situation is. I can't see any reason why that isn't what they would report to HMRC. So yes, you should consider this to be £50 each. Simple as that."
Nationwide's Advice
When asked about joint accounts where only one party is eligible, Nationwide stated: "The £100 payment belongs to the eligible member, however, in the case of a joint account where only one of the parties was eligible, HMRC may assume the interest is split between parties. The customer may need to contact HMRC for this to be changed if it impacts their tax position."
How Much Tax Could You Owe?
Tax is charged on taxable interest income according to your marginal income tax rate. If you need to pay tax on the full £50 portion (for a joint account), a basic rate taxpayer would owe £10 to HMRC. Higher rate taxpayers would face a £20 charge, while additional rate taxpayers would need to pay £22.50.
