Tax on PPI Winnings

Lian1969

Hi There.
Can anyone tell me if you have to pay Tax on your PPI Winnings?
Many thanks
Lian

di3004

Lian1969 wrote: »

Hi There.
Can anyone tell me if you have to pay Tax on your PPI Winnings?
Many thanks
Lian

Hi there

I thought they deducted this before they give you the full figure on the PPI, however, I may be wrong here.

Someone should confirm this to you soon, good luck.;)

showergirl

Lian1969 wrote: »

Hi There.
Can anyone tell me if you have to pay Tax on your PPI Winnings?
Many thanks
Lian

I had 20% tax deducted from my claim with Tesco

melorablack

With HBOS the 8% compensation interest is "taxable income" adn you have to sort this out yourself with your tax office.

di3004

melorablack wrote: »

With HBOS the 8% compensation interest is "taxable income" adn you have to sort this out yourself with your tax office.

Hiya Mel.

Glad you confirmed this.

I never had any of this stated on my refund letters, not unless this was done beforehand, and the biggest refund I received from the one was just under £13K.
Or do every company work out differently when working these out?

Cheers.......:D;)

melorablack

I think it may be different with each company but I know that with HBOS the bit about taxable income will be on the letter you get detailing the amount you are getting back.

I think it may only apply to the "compensation" not actual the "PPI & interest refund", so if it's a company that doesn't offer any compensation interest you may not have to declare it. (After all the refund of premiums was your money anyway - the compensation is extra).

di3004

melorablack wrote: »

I think it may be different and with HBOS the bit about taxable income will be on the letter you get detailing the amount you are getting back.

I think it may only apply to the "compensation" not actual the "PPI & interest refund", so if it's a company that doesn't offer any compensation interest you may not have to declare it. (After all the refund of premiums was your money anyway - the compensation is extra).

Arh I see.......:T:D, my confusion then lol, cheers Mel.;)