interest payment on PPI refund

dredscott

hi all,

received a letter from A&L offerring me a refund for mis-selling me PPI, however they have said the interest payment part of the refund is paid in gross, and i may have to inform the Inland Revenue.

Is it necessary to let the IR know if the gross interest part of the refund is less than £100?

Thanks...

di3004

dredscott wrote: »

hi all,

received a letter from A&L offerring me a refund for mis-selling me PPI, however they have said the interest payment part of the refund is paid in gross, and i may have to inform the Inland Revenue.

Is it necessary to let the IR know if the gross interest part of the refund is less than £100?

Thanks...

Hi there and Well done!:beer: :T :beer: .

In regards of the Inland revenue I don't actually know how this works, but I'm sure someone in the know will post on this matter for you at some point, I have never been told this on any of mine, so always best to get some opinions on this matter.;)

You can ask them as well if they have not done so already is to sent you a written breakdown of this through the post, so you know what is what and feel free to also post this on the above Reclaiming - Discussion thread, where this should be checked for you.;)

Di
X

AverageJoe_4

IR ? I doubt it, its not income, its money back to your pocket where it should have been in the first place. Would you pay tax on money in your pocket? The interest is simply a reimbursement of what you have paid them, and the 8% in compensatory so IMO, no the IR have nothing to do with it.

Also, tell them to pay you the full amount and your dealings with the IR is your business to pursue - but "thanks" for the advice A & L. *cheeky smile*

AJ

dec22

I think it is probably only the 8% statutory interest which is taxable at the basic rate of tax which is the same as any interest you receive for a credit balance on your bank account. You won't be taxed on the actual refund of interest paid. Ask the bank to to clarify this and then give the IR a call and check how you are supposed to declare the interest received. If you fill in a self-assesment form it would be declared on this.