Barclays explains why customers may 'incur extra costs'

A Barclays customer has questioned unexpected messages from the bank after opening an account. The concerned saver got in touch with Barclays over X to express their confusion about text messages they had received, worried they would face extra charges.

They queried: "Why am I receiving these texts when my account was set up in branch and why are you trying to charge me to reply? " Accompanying their query was a screenshot showing two text messages. One message requested the customer to "reply 'yes', or 'no'" to confirm if they are "solely a tax resident of the UK and is not a US citizen".

A subsequent text read: "Hi, we recently sent you a message about your tax residency information - please reply 'yes' or 'no' to the following text. Your Barclays team." Barclays issued an apology for any alarm caused by the texts, acknowledging: "I can understand your concern especially if they were unexpected". The bank clarified that gathering tax details from customers is not just routine but a legal requirement.

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They explained: "We’re legally required to collect tax residency information for any customers that have access to the income and assets associated with our accounts. Rest assured the SMS is legitimate, please respond YES/NO based on your Tax residency status." It added that any extra costs incurred while responding would be "due to your current network provider."

Barclays also encouraged the saver to send a direct message with their full name, postcode, and contact number to discuss an issue further. According to the bank's website, UK law mandates that "all financial institutions" must determine the tax residency of all account holders.

They are also required to ascertain if a customer may have tax connections with another country and report this to the appropriate tax authorities. Barclays cautions its customers: "This requirement results from international agreements designed to help tax authorities address tax evasion.

"This is particularly relevant if someone holds assets in countries where they’re not tax resident and may not be declaring those assets, or income, in their residence territory. Under these agreements, governments will exchange information about these assets and income with the residence territory."

For those uncertain about their tax residency status, Barclays advises contacting HMRC or seeking professional tax advice. You can phone HMRC on 0300 200 3300, with the helpline available Monday to Friday from 8am to 8pm, and Saturday from 8am to 4pm.