PPI Company fee prior to July

Nasqueron

MNORTH wrote: »

Damn, Well Thankyou, looks like as many others shall be... up the creek without a paddle.

Though I did read about something else for refunds, due to this cap... thats why I said, I can see the ads now lol

It's highly unlikely to be honest, the sales process since 2005 is much more robust and documented, the claims firms will have a detailed record proving anyone who used them knew about the services, knew they could complain directly for free and knew at the time what the fee was. Unless the claims fee cap is challenged in court and someone rules it should be retrospective, you won't get a refund

Kasha

MNORTH
Did you get anywhere with this? And can i ask did you pay vat on all of your ppi total or just the claims company fee?

[Deleted User]

You pay VAT on the fee. You don't pay VAT on money you receive.

[Deleted User]

Kasha wrote: »

Did you get anywhere with this?

Of course not.
Read carefully the responses for why.

I doubt "MNORTH" will be back to comment, months after he or she last logged on.

Sammyjp75

Please can you tell me if this is legal. I have received a PPI claim and the claim company fees are 25% plus 20% vat? 
The claim date was March 2018 and I received a pay out Jan 2021. 
They also took a income Tax deduction from HMRC of 20% is this also correct?

brettcta

Sammyjp75 said:

Please can you tell me if this is legal. I have received a PPI claim and the claim company fees are 25% plus 20% vat? 
The claim date was March 2018 and I received a pay out Jan 2021. 
They also took a income Tax deduction from HMRC of 20% is this also correct?

Yes and yes.

[Deleted User]

Sammyjp75 said:

Please can you tell me if this is legal. I have received a PPI claim and the claim company fees are 25% plus 20% vat? 
The claim date was March 2018 and I received a pay out Jan 2021. 
They also took a income Tax deduction from HMRC of 20% is this also correct?

Yes it's legal.
If you signed up for a CMC before the cap was introduced, you pay the fee. When paid out is irrelevant, it's a matter of when the contract was signed i.e. before the cap.
Yes, PPI interest is subject to tax, just as savings interest is. The bank deducts the tax for you. You can complete form R40 for this tax year (do it quickly though, before April ideally) to claim back the tax paid. Remember when you do the form you are only taxed on the INTEREST ELEMENT, NOT THE WHOLE REFUND. If you claim tax back on the whole refund there is a chance, depending on how much you were refunded, you will owe them money

dunstonh

Please can you tell me if this is legal. I have received a PPI claim and the claim company fees are 25% plus 20% vat? 

The CMC fee should be exactly what you agreed when you signed up.   So, if you signed up for 25% then 25% should be the fee.  Their service is vatable. So, the addition of 20% VAT is correct.

They also took a income Tax deduction from HMRC of 20% is this also correct?

The CMC wouldn't have done but the bank would have.   If you are  non-taxpayer or have excess personal savings allowance available to cover some or all of the tax on the interest then you can claim it back via HMRC.