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  • FIRST POST
    • karenbeg16
    • By karenbeg16 12th Jul 17, 10:09 PM
    • 1Posts
    • 0Thanks
    karenbeg16
    Ppi vat
    • #1
    • 12th Jul 17, 10:09 PM
    Ppi vat 12th Jul 17 at 10:09 PM
    Hi there,!
    I wonder if you could help me please.!
    I have had two separate successful PPI claims. The PPI company charges a fee of 30%.!
    Can I check though please whether the VAT that they charge is calculated on the Total Gross Amount or whether it should be calculated on the amount that the service cost (the 30% fee)?
    One claim they have done one way and one the other.!
    Thank you!
Page 1
    • zx81
    • By zx81 12th Jul 17, 10:16 PM
    • 12,678 Posts
    • 12,936 Thanks
    zx81
    • #2
    • 12th Jul 17, 10:16 PM
    • #2
    • 12th Jul 17, 10:16 PM
    On the fee.
    • 00ec25
    • By 00ec25 13th Jul 17, 1:02 AM
    • 4,538 Posts
    • 3,917 Thanks
    00ec25
    • #3
    • 13th Jul 17, 1:02 AM
    • #3
    • 13th Jul 17, 1:02 AM
    VAT is charged on the service they supplied - ie their fee only

    it is not, and cannot be, charged on the total since that is compensation due to you and is outside the scope of VAT

    http://www.taxationweb.co.uk/tax-articles/vat-a-excise-duties/there-is-no-vat-due-on-compensation-monies-but-what-actually-counts-as-compensation.html
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