taxed interest - can be repaid

moneywise_mum

Just a word of encouragement. When I applied for PPI repayment (thanks MSE) and eventually (it went via the Ombudsman) I got a payment from Lloyds, they had taxed all the interest including the interest they charged me on my card in addition to the insurance premiums. I spoke to HMRC this morning, and it looks as if they can repay the tax, including tax on the statutory 8% for the years when I didn't earn enough to be paying tax. So just... Persevere, some of the banks have a bad reputation for not repaying mis-sold PPI, and if you think you've had too much tax deducted from any repayment, check with the tax man. :j

societys_child

It's the tax man who insists the banks deduct the tax from the interest before they make the payment to you..

If you don't pay tax you can claim it back from the tax man, that's how it works, don't blame the banks. Form R40 I think.

A higher rate tax payer is obliged to inform the HMRC and pay them a bit more . . .