PPI tax question

Twisted_Animator

Hi all

Apologies if this is answered elsewhere... I just received my ppi refund and before I use it to pay off a loan, I assume I need to do something about the tax as HSBC note the interest part is taxable.

I am currently unemployed so how would I go about this? Do I just phone up HMRC or something? Will they take a payment up front?

Any advice gratefully received.

DrSqueeze

Hi,

You need to speak to your tax office, or write to HMRC and notify them. They can advise whether you will have to pay tax and how to proceed.

Remember, the only part you could be taxed on is the 8% interest - the rest is yours to spend as you wish.

Twisted_Animator

Thanks, that's great.

roonaldo

You would need to do a tax return at the end of the tax year and declare all incomes earned (even if unemployed). Your tax bill will then be calculated.