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Tax on PPI Commission

I have been offered a nice we sum on refunded commission. However, they are deducting 20% tax from the offered amount. Are they allowed to do this?

Comments

  • Yes, they are instructed to do so, if your a non tax payer you can reclaim it using tax form R40 and applying to your local tax office.
  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Yep.

    If you're not a tax payer, claim it back. If you're a higher tax payer, pay the additional.
  • dunstonh
    dunstonh Posts: 121,292 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You are not being taxed on the refund of the excess commission. You are being taxed on the added interest that is paid on top of the refund.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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