Received an offer of compensation for mis-sold PPI

mumbomumma

Hello.

I have received a letter from Clydesdale regarding a complaint I made (using the forms you make available on MSE.com) regarding ppi mis-selling on loans dating back over 20 years. They have offered to refund the PPI premiums paid, plus 8% interest, less 20% tax.

I would just like to check that this calculation of compensation is correct before signing the acceptance form.

Many thanks in advance for your help

Nasqueron

That is the normal refund process yes, remember it is 8% simple interest (i.e. not compound).

If you do not have any paperwork of your own then there is little point disputing it

mumbomumma

Nope - I didn't even have account numbers Nasqueron but sent the letters from MSE.com.

Thank you for your advice Nasqueron - I will pop the acceptance in the post today

Mersey_2

Yes, that's right. You can reclaim the tax paid on the interest element from HMRC (if you're entitled to ie earnings below c£11k in 2016/17).

[Deleted User]

I don't know about 20% tax. What is that for ?

societys_child

Deleted_User wrote: »

I don't know about 20% tax. What is that for ?

What is that for ? It's for the Tax Man . . . so he can pay everyone tax credits and stuff.:rotfl:

If you earn interest on (for example) savings in a bank savings account, the HMRC want their cut. This is known as tax.

So it follows that if you are paid interest on any PPI refund, then tax is due to the tax man, and 20% tax is deducted at source and paid directly to HMRC.

If you're non-taxpayer you can reclaim this 20% (from your tax man)

If you're a higher tax payer, then you'd need to make arrangements yourself to pay the extra tax you would still owe.

Mersey_2

societys_child wrote: »

If you earn interest on (for example) savings in a bank savings account, the HMRC want their cut. This is known as tax.

No tax to pay anymore on this from last April, ie 2016/17.



Interest will automatically be paid gross this year, due to the new £1,000 pa tax free allowance.

sun73

societys_child wrote: »

What is that for ? It's for the Tax Man . . . so he can pay everyone tax credits and stuff.:rotfl:

If you earn interest on (for example) savings in a bank savings account, the HMRC want their cut. This is known as tax.

So it follows that if you are paid interest on any PPI refund, then tax is due to the tax man, and 20% tax is deducted at source and paid directly to HMRC.

If you're non-taxpayer you can reclaim this 20% (from your tax man)

If you're a higher tax payer, then you'd need to make arrangements yourself to pay the extra tax you would still owe.

Not everyone gets tax credits or other "stuff" as you seem to suggest. That's only a part of how tax receipts are distributed.


It also went into the government's coffers and was used in 2008 to bail out the banks who were largely to blame for the mis-selling of PPI.


I don't mind paying my dues on any redress I've received so far. I just wish certain wealthy, yacht owning individuals and other well known businesses who "benefit" from the current tax system and make vast profits in this country would reciprocate.

Anyway, well done MumBommuma? Clydesdale are proving to be very thorough in their PPI investigations after a telling off from the FCA, enjoy your winnings!

societys_child

sun73 wrote: »

Not everyone gets tax credits or other "stuff" as you seem to suggest. That's only a part of how tax receipts are distributed.


It also went into the government's coffers and was used in 2008 to bail out the banks who were largely to blame for the mis-selling of PPI.


I don't mind paying my dues on any redress I've received so far. I just wish certain wealthy, yacht owning individuals and other well known businesses who "benefit" from the current tax system and make vast profits in this country would reciprocate.

Anyway, well done MumBommuma? Clydesdale are proving to be very thorough in their PPI investigations after a telling off from the FCA, enjoy your winnings!

I see your sense of humour removal procedure worked :rotfl:

Nasqueron

sun73 wrote: »

Not everyone gets tax credits or other "stuff" as you seem to suggest. That's only a part of how tax receipts are distributed.


It also went into the government's coffers and was used in 2008 to bail out the banks who were largely to blame for the mis-selling of PPI.

And of course the bank "bail outs" took the form of loans or share purchases which have to be repaid and the Government will get the money back in the long term even with the odd blip e.g. the brexit vote destroying the economy and trashing the value of shares the tax payer holds

Mersey_2

Well GO bailed out - on our behalf - the Republic of Ireland, Bradford & Bingley etc ie not just RBS. His lies meant he had to go along with DC. He'll be fine inheriting his father's Irish baronetcy and wallpaper business, of course.


But yes, a majority of the pesky people keep getting in the way of the EU, who are so used to just telling the Irish, French & Danes to keep having Referenda if they vote the wrong way.


Hopefully you don't have shares in RBS. I sold at their peak of 1946p.


As for the economy, I imagine the British will carry on as we always have and if anything far better without interference. 94% of UK businesses don't trade with the EU but still had to abide by every EU regulation. Plus, a YouGov poll showed 63% were prepared to take a hit on the economy if it meant we had control over immigration and our laws again.


http://www.thisismoney.co.uk/money/smallbusiness/article-3704979/StartUp-Britain-says-far-year-343-000-firms-set-UK-new-record.html