Tax on PPI

McKneff

I's income so why shouldnt they pay tax on it if its over and above the annual tax allowance.

I Pay tax the same as the rest of us. I'm over 60 and still pay tax on my income over and above my tax allowance

Sorry, I dont think anyone is making you out to be bad people, i really dont think that is the intention.

I'm sure you would rather your mum got interest less tax rather than no interest at all.

ndi149

Definitely, I would prefer my mum to pay her dues.

She still works, but isn't very sure about to who to approach for things like this, which is why I'm here.

What Barclays told her about her current account being non interest bearing seemed plausible, so I thought I better check, as couldn't see anything on the general internet about it.

roonaldo

I_keep_forgetting_my_name wrote: »

That is actually disgusting as someone tell me where I can get 8% interest on Savings. Plus any tax payer unless they had used all their allowance would no doubt have put it in at least a cash ISA, the highest rate at the moment seems to be 3.1%
Seems HMRC win whatever.
which hardly seems fair in the current climate.
Are these rates ever adjusted to take into current climates or are they set in stone 10 years ago when all was well?
Thanks
.

you have misunderstood, customers get 8% interest on top of the refund. Not you have to pay 8%. That 8% is then taxable just like any other income.

johnspot

ndi149 wrote: »

Thank you, for all the comments, spoken to my mum and I'm going to help her put together a letter to the HMRC.

I completely think it's better to be honest with the Inland Revenue about it, even though it's a bit of cheek.

thanks

I am pleased to say I WILL be paying approx £609-80p on the interest that I get on top of my refund of missold PPI an indication of how much I have been able to reclaim. thankyou thankyou thankyou Martin and your team

tifo

johnspot wrote: »

I am pleased to say I WILL be paying approx £609-80p on the interest that I get on top of my refund of missold PPI an indication of how much I have been able to reclaim.

That would mean you got interest of £3,049? Plus the PPi refund?