PPI Tax Refund paying off debt 10 April 2020 at 2:22PM in Reclaim PPI & other insurance 8 replies 132 views

julies59

My husband recieved a PPI refund from Halifax of £3,210,73 because he had made a PPI claim on the account he didn't get a refund but they took the amount off his claim,on the form it says the 20% tax refund is nil so can he put in a claim to get the 20% back from the £3,210,73




 

[Deleted User]

No.        

He can't have a refund of something he didn't pay.

julies59

He did pay for the PPI ,Martin said you can claim the tax back even if the money is used to pay off a debt,

Dazed_and_C0nfused

Your original post suggested there was no tax.

Irrespective of what you might think Martin Lewis has said PPI refunds aren't taxable and don't have tax deducted.  The statutory interest/compensation paid alongside the PPI refund is taxable and does usually have tax deducted.

No one can really help you until you provide the breakdown of how the total PPI related payout was calculated.

[Deleted User]

julies59 said:on the form it says the 20% tax refund is nil so can he put in a claim to get the 20% back from the £3,210,73

If the tax was "nil", how can you somehow claim it back? 

In addition the whole refund is not taxed in any case; only the interest element. 

As above, post the complete breakdown the Bank provided.  

julies59

The breakdown

[Deleted User]

That shows that no tax has been paid, so there could be no refund.

brettcta

As above, how can you expect to get a refund of tax you haven’t paid?

[Deleted User]

So you paid only a few grand for this policy, successfully claimed over twelve  grand from it  and now expect further remuneration????

You didn't pay any tax on the refund, because the gross payment awarded was nil...

This will have been an exercise in simply improving the Bank's complaint  statistics. Since no additional money was ever going your way, the Bank upholding your "complaint" has cost them nothing which is exactly what you are entitled to..

Your thread title is inaccurate. There was never any outstanding  "debt"  to repay on this account.