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SETTLEMENT: 8% interest and HMRC

Got my settlement letter today. They are deducting over 2k for a previous rebate paid (even though I didn't even know I had the insurance - how can that be right?!)

They have said I need to contact HMRC in respects to the 8% interest payment. What has been people experiences of this? Do HMRC take much from that? What is the best way to alert them?

Thanks in advance

Comments

  • amersall
    amersall Posts: 17,037 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    If you had 2 loans with PPI and you repaid one with the next, they would have given you a rebate of the PPI, the remaining PPI would have been repaid by you in settlement.

    If you are a taxpayer the tax has to be paid on the 8% amount, if you pay 20% or 40% tax then that will be what you pay on the 8% amount.

    If you are a non taxpayer, I believe the tax is not payable, contact HMRC and ask.
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