Paying Tax on PPI Refunds

Slimming-world

kittiej wrote: »

Are you sure that's correct because I had £3500 back and the amount subject to tax was £200 (so 20% of £200)

did you get back £200 in interest at 8%?

I wonder if it is because mine goes back a long time and most of my refund is made up of the 8% interest

Slimming-world

DrSqueeze wrote: »

Just be sure to double check the figures carefully.

Remember you are NOT taxed on interest they refund to you. You are only taxed on the new interest they pay to you. Their breakdown should make the difference clear.


There's no such thing as a daft question. Telephone or write to them and they'll let you know what you need to do.

Hi thanks for your reply

the break down shows the
total refund it states that this is includes interest paid
then the 8% interest total
the PPI refund hasn't been separated from the refund of interest by the looks of it
and they haven't supplied me with any dates or rates of interest

I think the reason why I have been given so much interest at 8% is because I stopped paying almost 10 years ago and the loans are over a few years before that ( hope that makes sense)

DrSqueeze

Slimming-world wrote: »

I think the reason why I have been given so much interest at 8% is because I stopped paying almost 10 years ago and the loans are over a few years before that ( hope that makes sense)

Yes, makes perfect sense. Didn't want you to pay more tax than you need to.

Enjoy spending or saving your win, it's an excellent result :beer:

Slimming-world

DrSqueeze wrote: »

Yes, makes perfect sense. Didn't want you to pay more tax than you need to.

Enjoy spending or saving your win, it's an excellent result :beer:

Cheers DrSqueeze!

The money has already got a good home to go to :rotfl::rotfl:

I am still in shock :eek::eek:

Good luck with all of yours :j

DrSqueeze

Thank you

rossdnp

I received a lovely refund from Egg, and didn't have to go through a third party - I just sent them an e-mail telling them that I wanted to claim back the PPI because I was led to believe that the loan wouldn't be given unless I agreed.
They refunded me the whole PPI back (about £3100), and I ended up with an overall cheque for £6150, of which I have to pay roughly £400 in tax.
Well worth it :j
I'm also in the process of claiming back credit card PPI refunds from Egg and Capital One....

funk1979

rossdnp wrote: »

I received a lovely refund from Egg, and didn't have to go through a third party - I just sent them an e-mail telling them that I wanted to claim back the PPI because I was led to believe that the loan wouldn't be given unless I agreed.
They refunded me the whole PPI back (about £3100), and I ended up with an overall cheque for £6150, of which I have to pay roughly £400 in tax.
Well worth it :j
I'm also in the process of claiming back credit card PPI refunds from Egg and Capital One....

what is their email address or is that for current egg customers only as my egg loan finished back in 2007

legionnaire75

Hi

I have recently been refunded (hah) £3200, with some to pay off arrears and the rest as cash payment on loan.

The company in question, after receiving my acceptance, have now put a hold on payouts. The payout on the arrears has been put on my account but not reconciled with the arrears, so I am still acrruing interest on that...but the other part has not been paid at all as they are sayijng a new legislation from inland revenue has been made, and all PPI payments are on hold till 7th July until a decision is made, and all offers may need to be re-looked at.

Now, the employee at W*** who I called to sort this, told me that my acceptance was received prior to this legislation change, and as some had been paid on, the rest should have but he is not the one to say, and has been told it's on hold.

CAB have told me to write saying it is breach of contract. The company said the offer and acceptance is not a legally binding document, for which my solicitor has said is rubbish...as they sent me something in writing to sign, which I did, therefore making it legally binding. If it s not legally binding, does that make my original signature on the loan non-legally binding?

My query is - is this correct and is this legal? The company are already in default, I have raised complained with ombudsman, but they have a 12 month turnaround. I am at a loss....as I would not accept a lower amount, as I only accepted in frustration as it was at least something. I have an ongoing claim for the updated loan with them, going via FSCS.

Please help!!!