Tottaly confused- PPI repayment / tax to pay

jasonr01

Hi all,
Now I know when it comes to these things it doesnt take much to get me confused so after some help please.
I have just had a repayment from barclays re ppi

it states
A PPI original premium £4253.94
B interst incurred Due to PPI £1880.80
C 8% Per annum simple interest £3358.40

Less early settlement (£387.27)

H Over payment due to residual PPI-Amount paid £101.29

I Additional 8% simple PPI £748.37

K refund due £849.66

As will notice in the alphabet i have missed letters out these are all 0 values.
I appreciate i now need to pay tax but have no idea how much or at what percentage.
I currently pay at 20% tax rate however if this is classed as earnings this will more than likely take me into 40% bracket.

can anyone advise in there opinion what you think I will have to pay.
Done with Barclays so i know the tax has not yet been deducted.

Many thanks in advance

J

amersall

The tax is on the 8% figures,ring the inland revenue and tell them about this 8% and you may be able to pay extra tax over the next tax year,or if you can pay this at once you can do that.

amersall

How did you only end up with £849.66?.

jasonr01

hi Thanks for your reply.

can only give you the information given.
Are you then saying I am paying £849 to the tax man.
Sorry really stupid on these matters
need my hands holding!!!!!!!!

jasonr01

Amersall,
reading your post again.
just to clarify the bank have paid in excess of 11K back
The original loan was for 15K but paid off early and then a new loan for 8600 was taken out which also had ppi.
the bank have made two seperate payments 1 for just under 10K and another for the balance which i assume refers to the second one.
Are you therefore saying based on the information above I will be paying 20% of the 8% figures being £3358.40 plus £748 = £4106.40 x20% =£821.28
Many thanks in advance to anyone who can answer for me

amersall

C 8% Per annum simple interest £3358.40

This at 20%

and this..

I Additional 8% simple PPI £748.37

You tell the taxman what the 8% amounts were.
Think it will be about £800 in total.

What was the actual amount you received back for the whole redress including the 8% amounts?.

It looks like you had a few thousand there,but they only said the the redress due was £849.66?.

amersall

jasonr01 wrote: »

Amersall,
reading your post again.
just to clarify the bank have paid in excess of 11K back
The original loan was for 15K but paid off early and then a new loan for 8600 was taken out which also had ppi.
the bank have made two seperate payments 1 for just under 10K and another for the balance which i assume refers to the second one.
Are you therefore saying based on the information above I will be paying 20% of the 8% figures being £3358.40 plus £748 = £4106.40 x20% =£821.28
Many thanks in advance to anyone who can answer for me

Thanks for that,you answered before i could ask!!.

amersall

You could ask the taxman to increase your tax code for next years tax allowance,so you pay this back over time and not in one lump sum.

jasonr01

Hi amersall,
thank you again for your reply. sorry for the delay in answering but I am in Chile on business and was in a meeting.
I appreciate your help and I think I will pay the £800 in one go as to be honest I was not expecting to get anything so as you can image my brain has gone to Mush
Once again thank you for your help