General Chat, Products & Comps <
09/05/2013 at 09:24
So H has had a successful PPI claim and he received his letter yesterday telling him how much he is getting. The letter also said he needed to inform the tax man of his refund as he would need to pay tax on it as its classed as an income. What a bloody cheek. If Asda over charge you and refund you you don't have to pay blooming tax on it do you!! I am raving!!!
09/05/2013 at 09:44
It is balls isn't it.
09/05/2013 at 09:46
A bloody con!!!! I know its money we wouldn't otherwise have had, but even so by the time we pay the claim people and pay the tax man its a pittance to the original figure!
09/05/2013 at 09:57
Why'd you use a 3rd party you wally! It's so easy to do yourself.
Up to you whether you pay or not...
09/05/2013 at 10:30
I know....that H for you. He would never have written letters etc if it was down o him. Also in his defence, he started the claim when we were selling the house and moving jobs etc so it was one less thing for him to worry about. Even so...I know that he would never have done it off his own back.....MEN!!!!!
09/05/2013 at 10:53
I wouldn't of even thought about paying tax on them? Unfortunately I'm not lucky enough to have a claim and neither is H!
09/05/2013 at 12:58
It's only the interest element that is taxable as opposed to the whole amount.
Also check the calculations that breakdown the payout as a lot of banks/companies will deduct basic rate tax before they pay out, in which case you will only have tax to pay if your H is a higher rate tax payer.
09/05/2013 at 14:24
Have you seen this? www.hmrc.gov.uk/.../ppi-advice.htm seems to be dependent on where he's getting the PPI back from as to whether it's taxable:
The interest may have tax deducted depending on the type of company making the payment of the interest.
If banks and building societies are paying the interest then there is no obligation on them to deduct tax because the interest is not interest on a deposit and there are specific exemptions for banks and building societies from the need to deduct tax from yearly interest.
I might start up a PPI reclaim business - I got it back for 5 people just using the template letters on MSE. I didn't charge but clearly I should have, seems to be money for old rope to me!
09/05/2013 at 14:26
I've always wondered if you use one of those PPI reclaim companies then you find out you're due a refund can't you just cancel the authorisation for them to deal with your bank and then do it yourself anyway?
09/05/2013 at 14:28
He got it back through Lloyds TSB. Its his day off tomorrow so he will give the tax man a call. He also needs to declare his second job that he has recently started as they have started paying him in to his bank account.
As an aside, don't you love the way we talk about the "tax man" like he is just one person, as opposed to a whole team of robbing gits!!! lol
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