VAT charges on endowment compensation

stukaville

I have recently been awarded £4000 compensation for a mis-sold endowment policy. I currently do not work due to ill health so am able to reclaim the tax. Ive already posted the certificate of tax payment provided by the company who missold the policy. As part of the agreement i pay 33% of my claim award to the claim management company. I want to know if I can claim back the 20% VAT I will be charged on their fee.

TrickyDicky101

There is no tax on the compensation award.

As far as I know, you won't be able to reclaim the VAT charged by the compensation company.

Why did you go through a company and not go direct?

kingstreet

Isn't there an income tax deduction on the 8% statutory interest added to the premium refund/compensation?

I agree about the VAT. It doesn't matter if you are a taxpayer or not. You pay VAT on a VATable service.

dunstonh

The VAT is not on the compensation. The VAT is because you employed a firm to use the free of charge complaints process and the fee from the CMC is VATable. And no, you cannot claim it back.

stukaville

TrickyDicky101 wrote: »

There is no tax on the compensation award.

As far as I know, you won't be able to reclaim the VAT charged by the compensation company.

Why did you go through a company and not go direct?

Hi. I used a claim company because I would not know where to start. I did try and contact Barclays direct to start with but they were zero help. Couldnt find any information on my policy and then I found out who the policy has been sold to they couldn't find any information on my policy either, despite the fact I had the original paperwork from Barclays. I got the impression they were just lying in the hope I would give up and go away. Things only started to move once I got help from the claims company.

dunstonh

Hi. I used a claim company because I would not know where to start.

Dear endomwent seller,

I believe my endowment was mis-sold. Please can you investigate.

yours sincerely,
Stukaville.

That is all it takes. No more, no less. A bit more info may be useful but that is all that is required to make that complaint.

magpiecottage

The FCA defines a complaint as "any oral or written expression of dissatisfaction, whether justified or not, from, or on behalf of, a person about the provision of, or failure to provide, a financial service"

Oral means face to face or on the telephone.

Written includes letters, faxes, e-mails etc.

Either would include any language which both parties understood or could be reasonably expected to understand. This could include such things as British Sign Language or Braille.

(I am not sure that you would get away with arguing that the other side was a Star Trek fan and you were therefore entitled to communicate in Klingon)