Help after ppi now have a huge tax bill

Dazed_and_confused

It seems likely the problem you have is that you/hubby have reported some non taxable income (the actual PPI refund) to HMRC when they only need to know about the taxable element, the interest (and tax deducted).

Let us know the outcome.

Nearlyold

In simple terms a PPI refund consists of
(a) The premiums you paid being returned to you.
(b) Statutory Interest at 8% annum simple on the premiums paid.

You DO NOT pay tax on (a) you only pay tax on (b). It sounds as if you have confused HMRC by incorrectly giving them (a) plus (b) as the amount you received which is taxable.

Mellyhen

I got it sorted, no tax owing at all ,it was already paid by the bank before we were awarded it! I had incorrectly entered the full award & not the interest only on an r40 form to try & claim the tax back & of course the tax deducted didn’t add up with the amount I had entered as interest!
I since found out After talking to 4 HMRC representatives that I should not have filled out that form anyway as it’s for non tax payers to claim. Only one of them pointed that out to me!
Anyway finally sorted!
A bit cross with HMRC as I sought their advise before going ahead with the claim & not one told me I wasn’t eligible to even bother trying!

Thank goodness & thank you for all your advise I am now a little wiser!:o:)

[Deleted User]

Dazed_and_confused wrote: »

you will need to explain to HMRC that you told them the wrong info in the first place and ask them to alter his calculation.

Mellyhen wrote: »

I got it sorted, no tax owing at all ,it was already paid by the bank before we were awarded it! I had incorrectly entered the full award & not the interest only on an r40 form to try & claim the tax back & of course the tax deducted didn!!!8217;t add up with the amount I had entered as interest!

Just as "Dazed and confused" explained.

Mellyhen wrote: »

£11852 was the award before tax & their deductions we actually got just under £6000

So you paid £5,852 for the Claim Company to put a stamp on the envelope containing your complaint!:eek:

If you had complained directly you could have kept all of this money and you wouldn't even have paid VAT!:(

dunstonh

A bit cross with HMRC as I sought their advise before going ahead with the claim & not one told me I wasn!!!8217;t eligible to even bother trying!

Are you not a bit cross with the CMC as:
1 - they didnt tell you this despite you employing them
2 - You paying them over £5k for using a free of charge service?

Kent_guy

Ive just had a payout from FSCS to which attracted a ‘notional return’ on the amount. I phone HMRC and explain that I wish to pay tax on it and their answer is ‘as far as HMRC is concerned you are not liable to pay tax’, I again went on to say its a return on my money and I’m a full rate taxpayer.......basically I want to pay tax and they said there’s no need!!
CONFUSED TOTALLY !!!128580;

[Deleted User]

Kent_guy wrote: »

I want to pay tax and they said there!!!8217;s no need!!
CONFUSED TOTALLY !!

Detail the amount you have been refunded and it will probably become clear why you are not liable for tax. Remember that you are only ever going to pay tax on any interest, not on the actual PPI refund.

dunstonh

Kent_guy wrote: »

Ive just had a payout from FSCS to which attracted a ‘notional return’ on the amount. I phone HMRC and explain that I wish to pay tax on it and their answer is ‘as far as HMRC is concerned you are not liable to pay tax’, I again went on to say its a return on my money and I’m a full rate taxpayer.......basically I want to pay tax and they said there’s no need!!
CONFUSED TOTALLY !!!128580;

I would suggest you start your own thread rather than hijack an existing one in progress. Thread hijacking is considered inconsiderate as your questions could take the thread in a different direction and kill off the discussion by the OP.
Copy and paste yours into a new thread.