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refund - tax?
Tugela
Posts: 109 Forumite
I have just been informed by Monument Credit Card that I am due a refund of £442.39 for PPI I paid. They have deducted an amount of £88.48 from this amount for tax - on phoning and enquiring I am told that they have to take 20% off for payment to HMRC. Is this correct please? thanks
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Comments
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Yes - unless you are not a taxpayer.0
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The Bank will still deduct the money in that case and the OP will have to seek a tax refund from HMRC.Deleted_User wrote: »unless you are not a taxpayer.0 -
ok thanks. I am a taxpayer even though I don't actually pay tax as I don't earn enough - so this deduction is still right I presume.0
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Erm, if you don't earn enough to pay tax, you can most probably claim the £88.48 back from the tax man . . .0
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I have just been informed by Monument Credit Card that I am due a refund of £442.39 for PPI I paid. They have deducted an amount of £88.48 from this amount for tax - on phoning and enquiring I am told that they have to take 20% off for payment to HMRC. Is this correct please? thanks
Double check their calculations. They should only deduct tax from any additional interest they pay you. Remember that they are refunding the money you paid them.
So if the £442.39 is the total payout then they have taken far too much tax off. If that amount is just the additional interest then they have deducted the correct amount.
Example:
Refund of PPI Premiums: £100
Interest added £ 20
Total payment £120
In the above example, tax should be deducted from the £20 only.
If you're not earning enough to pay tax, contact HMRC and ask if you're entitled to have the tax deduction refunded.0 -
Moneyineptitude wrote: »That made me chuckle:D
Lol as I work shifts and can work extras it does depend on how much I earn in a week whether I pay tax or not....... so this is why I said I am a taxpayer but don't pay tax .....sorry hahahha0
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