HSBC mortgage PPI

dunstonh

If I go to Tescos and get milk and eggs and pay for them at the same time, it is down as one transaction I'm guessing.

You could spend twenty minutes speaking to the butcher who prepares the meat you need. Then on the way out, you pick up a packet of sweets. Two different things in the same transaction.

saver861

dunstonh wrote: »

You could spend twenty minutes speaking to the butcher who prepares the meat you need. Then on the way out, you pick up a packet of sweets. Two different things in the same transaction.

Possibly. However, in your example there is no correlation between the butchers meat and the packet of sweets.

As the MPPI bought was to protect the Mortgage bought .... to follow with your analogy, if said butcher recommended buying Tescos onions to go with the steak purchased from same said butcher, then that would be advice, influence etc..... on top of that, if said butcher was aware I already had a bag of onions at home but remained insistent on getting Tesco's onions ... well most people would conclude said butcher was mis-selling ... of sorts.

magpiecottage

saver861 wrote: »

Not sure whether there is different regulations for different sectors but in my case first £30,000 is tax free and there is no NI deductions.

That is key.

If there is a contractual entitlement then the entire amount is subject to tax. As you did not pay tax it is discretionary.

This is nothing to do with particular sectors. HMRC applies it to ALL employment. If a redundancy payment is a contractual right then it is taxable and the employer must withhold it under PAYE.

So I am correct, you had no contractual right to it.

saver861

magpiecottage wrote: »

If there is a contractual entitlement then the entire amount is subject to tax. As you did not pay tax it is discretionary.

This is nothing to do with particular sectors. HMRC applies it to ALL employment. If a redundancy payment is a contractual right then it is taxable and the employer must withhold it under PAYE.

So I am correct, you had no contractual right to it.

Well if we consider the redundancy policy of the employer is to pay x amount via a formula, then that is an obligation of the employer. If I take up employment and that is the policy at the time, then that is what I expect to happen - unless there is a policy change. You will argue that if they can change the policy then it is not contractual. I would argue that if the policy changes I would readdress my insurance requirements at that time. So while it may not be contractual in the eyes of HMRC for tax purposes, if its the employers policy then thats what I, and every other employee, would expect to happen.