Won my battle for PPI comp. Now help please!

Dowsett

Hi all,

I would first like to say thanks to people who manage/run this website and forum users for their help.

After a long time i have had an offer from Halifax regarding my ppi compensation! woohoo.

Now a few things i dont understand which is why ive come here. The letter i recieved with an offer also states:

"Please note, part of this offer relates to 8% interest. HMRC consider this 8% interest as taxable income. You should therefore discuss the payment with your local tax office or financial advisor to determine whether any tax is due”

So, do i have to pay the tax man or not? i heard somewhere that some of the bigger firms deduct this automatically. At first i couldnt get my head round why it was taxable etc. Im still nto 100% sure but realise that the interest is taxable.

I am a basic rate tax payer. Do i need to do anything? or can someone offer some help.

Thanks

Sarros

Dowsett wrote: »

Hi all,

I would first like to say thanks to people who manage/run this website and forum users for their help.

After a long time i have had an offer from Halifax regarding my ppi compensation! woohoo.

Now a few things i dont understand which is why ive come here. The letter i recieved with an offer also states:

"Please note, part of this offer relates to 8% interest. HMRC consider this 8% interest as taxable income. You should therefore discuss the payment with your local tax office or financial advisor to determine whether any tax is due”

So, do i have to pay the tax man or not? i heard somewhere that some of the bigger firms deduct this automatically. At first i couldnt get my head round why it was taxable etc. Im still nto 100% sure but realise that the interest is taxable.

I am a basic rate tax payer. Do i need to do anything? or can someone offer some help.

Thanks

Hi, I think all you need to do reagrding the taxable boit is to contact your local tax office to inform them and I think they amend your tax code accordingly.

-taff

Yes you have to paythe taxman, but phone and ask about it, they may amend your code, they may acept it in a lump sum.

It's taxable because ti's a source of income...
https://www.gov.uk/income-tax-rates

Dowsett

-taff wrote: »

Yes you have to paythe taxman, but phone and ask about it, they may amend your code, they may acept it in a lump sum.

It's taxable because ti's a source of income...
https://www.gov.uk/income-tax-rates

Yer,

I read somewhere that, although not alot, the tax man may alter your tax code so i get it back in my wages.

Im not tax expert but im quite sure that its not gonna push me up another band or effect me any other way. I just want it to come to an end!

I guess i should be able to pay a lump sum when i recieve my monies.