MSE News: Got a PPI payout? You probably owe tax

edited 30 November -1 at 1:00AM in Reclaim PPI & Other Insurance
48 replies 26K views
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  • nihplodnihplod Forumite
    10 Posts
    Hi everyone,

    I am with RBS and they have told me that tax is being deducted automatically, which is fine, but how do I declare on my tax return that I've had the tax already paid?
  • Hi,
    I have received 2 out of 3 PPI claims and am awaiting the last one. I am medically retired on DLA and Pension Credit so I do not pay tax. How do I reclaim the tax that HSBC have taken off my claim?
  • [Deleted User][Deleted User] Forumite
    0 Posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    MoneySaving Newbie
    HSBC haven't "taken" anything. The taxman has. You reclaim from HMRC.
  • Just got notification of a successful ppi claim with a payout including nearly £1k interest. I am a 40% tax payer and do a self assessment each year. Tax (20%) has been deducted at source, so potentially got this again when I do my tax return. Does anyone know if this interest is offsetsble against our new savings interest allowance?
  • Supersub12, did you get this sorted out? I too currently pay 40% tax and self assess due to owning a rental property. I'm wondering how to put in the figure to show that I have already paid the 20%.
    In my case there were 8-off PPI claim that I've already paid 20% on the interest portion.
    I know the figure that I still have to pay 20% tax on i.e. I know the amount of tax that I owe. I was thinking that I increase the taxable figure so that 40% of it is the same amount as 20% figure of the original figure.
    Make sense to anyone?
  • [Deleted User][Deleted User] Forumite
    0 Posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    MoneySaving Newbie
    mclearg wrote: »
    Supersub12, did you get this sorted out?
    The poster in question made one post and never logged into the site again.
    http://forums.moneysavingexpert.com/member.php?u=2517900

    For further advice you should contact HMRC.
  • 8% as seen as income, but if you paid off credit card#1 with credit card#2 and you got your ppi returned from CC1 then you have had no income from the 8% interest as you were paying 25% (Apr) on CC2, (at best 25-8) we were all encouraged to do these balance transfers for me the paying of tax is not correct as I should be put back in the position as though I had not taken out the PPI as I was mis sold it, at least let me keep it.

    If it was income then yes it should be taxed but if it's still debt then all you have done is taken more of my money!

    And 8%! Who agreed that figure? someone who is in the banks pocket or has never lived with paying off the minimum each month, how does the 8% reflect my average credit card rate of 19%!
  • [Deleted User][Deleted User] Forumite
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    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
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    Erinski wrote: »
    And 8%! Who agreed that figure? someone who is in the banks pocket or has never lived with paying off the minimum each month, how does the 8% reflect my average credit card rate of 19%!
    Since attendant interest is also paid as part of credit card redress, and everyone is put into the financial position they would have been in had they not had PPI, your remarks about the taxation of the 8% additional interest are not applicable.
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