ppi and tax

supermaz

I successfully reclaimed ppi on 2 credit cards, these accounts are currently being paid on a repayment plan and the award was deducted from my balance , so I have received no monetary advantage, what is the position regarding tax the last thing I need is another debt with the tax office, I was not given the option of cash.

amersall

You need to contact the bank and ask what the 8% amount was, if you do not pay tax, maybe you do not earn enough to take you over the threshold for tax,then you do not pay tax on this if it does not take you over your tax code limit for the year.

If you are a taxpayer i think you still have to pay the tax on this even though you have not had this money given to you, in a round about way this money was taken off the balances so you had the benefit from this.

It would not hurt to ring HMRC and get clarification.

corky2

You have received a monetary advantage; the reduction in the debt. If you are a taxpayer, you will need to declare the 8% interest to HMRC. Phone them up, tell them the amount of interest, and ask them about ways to pay given your circumstances (i.e.will they allow you to spread the payment or will they want a lump sum)