PPI Tax max fees?

philologus

The PPI maximum fee limit was set at 24%.

Has this limit been applied to the fee payable to companies who are claiming the Tax back on PPI payments  for customers - or is it bonanza time for them (again)?

My sister has just been charged 48%.

Dazed_and_C0nfused

I'm not aware of any cap on fees a company can charge in this area.

As I'm sure you've already told her there is absolutely no need to use a claim company, especially when you have to provide all the same information to them as you would to HMRC if doing it yourself.

https://www.litrg.org.uk/tax-guides/tax-basics/how-do-i-claim-tax-back/should-i-use-tax-refund-company

philologus

You are right, I have told her that, and I've pointed out that she signed papers allowing this extortion, but she is 73 and thought this was how to make the claim.

dunstonh

PPI Tax max fees?

There is no such thing as PPI tax.      Interest is potentially taxable in the UK.   And part of the redress payment on upheld complaints is paid as interest.

Has this limit been applied to the fee payable to companies who are claiming the Tax back on PPI payments  for customers - or is it bonanza time for them (again)?

No. This is because it does not fall under the remit of the FCA.   A 13 year old child can claim the tax back as its that easy.  It requires no skills. 

People who fill in tax returns each year automatically do it via that and those that don't get tax returns just need to notify HMRC of the interest received and tax paid.  HMRC do the rest.

The companies that are getting people signed up to do this are jumping on a bandwagon and taking advantage of people.    They are pretty much scumbags.   By comparison, an accountant would do your full personal accounts for about £100-200.

philologus

This company contacted her by 'phone and said that they might be able to get her some Tax back off previous ppi claims. They didn't tell her that she could do this herself.

Isn't there legislation concerning this? - Bearing in mind that she is 73.

Dazed_and_C0nfused

philologus said:

This company contacted her by 'phone and said that they might be able to get her some Tax back off previous ppi claims. They didn't tell her that she could do this herself.

Isn't there legislation concerning this? - Bearing in mind that she is 73.

There is currently a consultation about this type of tax claim company.

https://www.gov.uk/government/consultations/raising-standards-in-tax-advice-protecting-customers-claiming-tax-repayments/raising-standards-in-tax-advice-protecting-customers-claiming-tax-repayments

p00hsticks

philologus said:

Isn't there legislation concerning this? - Bearing in mind that she is 73.

I don't think age really comes into it - there are plenty of fully capable and financially astute 73 year olds around who might take exception to your insinuation that just because she is 73 she shoudl be taken to be not fully capable of managing her affairs.

philologus

I'm sorry if that's the way you read my post. That definitely isn't the way I meant it - I'm her older brother

I was thinking of legislation such as this:-

https://cpdonline.co.uk/knowledge-base/safeguarding/legislation-and-policies-that-surround-safeguarding-vulnerable-adults/

[Deleted User]

Unless you had something like PoA saying she was incapable of dealing with her finances, not sure what you'd get from that - simply being old and naive isn't an issue