Welcome Finance PPI reclaim

silverback18

I made a successful PPI reclaim against Welcome Finance, they sent me the figures of the repayment, I sent back the acceptance form recorded delivery, heard nothing back, I spoke to them today, they said they had received the acceptance form, but were delayed by the interception of the HMRC, regarding tax on the payment, they said this is now sorted and they will be sending out a new offer, which when I asked will be less than before due to the tax, is anyone else aware of the HMRC been involved, why would tax be due on any money from a PPI that I should not of been paying, or am I been lied too

finnella_2

I maybe wrong but I believe you have to pay tax on any interest accrued.

silverback18

Possibly, but surely any interest should be covered by Welcome as they are the ones who miss-sold me the product, it seems even the tax man is getting in on the PPI reclaims

amersall

It is the compensation, the 8% amount that is taxable, regardless of who the redress is paid by.

tifo

the interest you make is taxable because it is income, much the same as the interest you receive on a savings account. The premiums and associated interest they took is not taxed because it was from your net income after tax.