Tax and PPI

[mgfboy]

Just had a interesting little piece if information about PPI refunds, you may all know this but I was unaware.

It appears that you should declare the additional interest on the compensation at 8% that is paid on top of the refund of payments and interest to HMRC.

It doesn't apply to everybody, but it is something to be aware of.

http://www.hmrc.gov.uk/news/ppi-advice.htm

[di30]

Re: Tax and PPI

Excellent Mgfboy.

I do also have some details somewhere on how much tax, how they do it and how much etc.....in % depending on what type of tax payer you are.

The link you posted is very helpful, thank you.

[pompeyfaith]

Re: Tax and PPI

Tax is only payable on the additional 8% stat interest the bank pay you and not the PPI refund of premiums itself as they would have already been subject to income tax.

The bank should state on the redress letter the amount that is payable in tax they did with me but I did not have to pay it because in that year my earnings was below the earnings limit.

[di30]

Re: Tax and PPI

And sometimes they adjust the tax themselves then leave you with the remaining, but they do confirm this, otherwise they will confirm that we have to contact the tax office direct to make these payment arrangements.
For example, if the bank/business have not deducted the tax themselves.
If they have deducted tax automatically and you come below the earnings limit, you can ask the tax office to refund this back to you.

Or if your a higher earner where just the standard 20% has been deducted, you have to make arrangements directly to the tax office - in order for them to deduct further, for eg @ 40%.

[oscar]

Re: Tax and PPI

Halifax dont deduct and dont advise you. They just let you get on with it.

[helmsman]

Re: Tax and PPI

Hi,
Mother in law is getting calls from someone who claims she is owed money from a loan she took out with ppi, today she has agreed for them to come to her house at 4pm tomorrow. They wont tell her who the loan is with or who they are. (she is in her 80s). But she is to sign her papers. obviously I will be going over there tomorrow to see them off. The phone no they use is 02392987558 they dont answer. did not tell us till after she made the app.

[mgfboy]

Re: Tax and PPI

If it was me , even if it is the mother in law, I would be around there like a shot and wait for them to arrive and then tell them in no uncertain terms to bog off!!!!!

They sound like scammer to me.

[Deepie]

Re: Tax and PPI

------> http://whocallsme.com/Phone-Number.aspx/02392987558

[di30]

Re: Tax and PPI

.........and maybe ask someone from Trading Standards to be there, poor lady taking advantage of her like that!

[helmsman]

Re: Tax and PPI

------> http://whocallsme.com/Phone-Number.aspx/02392987558

Thanks I2D Have informed the police they say if they turn up and cause a problem phone them. Indian call centre I would like to the fuckers bothering vulnerable people.

[MattyA]

Re: Tax and PPI

Back to the tax thingy.....


What if you are in dispute with the bank re the amount of the settlement and how they have calculated the same?

If the calculate the redress to be say £10K inc £2K simple interest at 8%.....but you calculate it to be £15K inc £3K @ 8% ....and are still arguing about it even though they have 'paid' it by settleing your outstanding balance.......where would you stand then?


I have a few of these ongoing so would be more than interested to hear other peoples views.

As it stands and needing to complete my self assesment by tomorrow ...lol.....I am not going to declare the 8% paid to date because the verall figure and therefore the 8% is incorrect.

When it is correct , I will pay what I owe in that tax year without question.

Matty

[Richard999]

Re: Tax and PPI

I don't think the tax man (computer nowadays)would argue with your calculation of what is due either refund / or tax to pay !

[SXGuy]

Re: Tax and PPI

Actually, i have to disagree with you.

If you have received the money you owe tax on it, disputed or not.

if you find they end up paying you more, then you need to work out the dates of the first payment and the date of the last.

Reason being, you may not actually owe tax on the second payment if its after 5th April, as it will be treated as a new tax year

Therefore you have to declare what you have been given now. (Although id not be declaring it anyway lol)