Then.tax Ltd PPI interest claim

sharkmeister

Hi 

I claimed alot of PPI back using a company called Allay Claims. It seems that they have partnered with a company called then.tax to claim back the PPI interest that was deducted. I agreed to let them look into it and signed their form on 19th Oct. 

I was having a read of the agreement last night and didn't particularly feel confortable continuing with the claim as it seems like they will look at all sorts of different things not just the PPI interest so I sent them an email to confirm I didn't want them to act on my behalf.

They have emailed me today saying thay there will be a fee to pay of £95.88 + vat which they charge when outside of their cooling off period. I have wrote back to them saying I refuse to pay as I don't feel it was made clear in the agreement under cancellation:

"You may cancel the contract with us at any point during the 14-day cancellation period free of charge. Please note however that you will lose the right to cancel if the relevant Services have already been completed prior to our receipt of your notice of cancellation. In these circumstances any Fees due to us for any Services which we provide up to the date of cancellation will be payable. To cancel please email cancellations@then.tax"

They said this £95.88 is their Average fee and haven't said its for work done on the claim. I have said this should have been stated in the agreement and is therefore misleading. I've also asked them to provide proof of any work done relating to my claim by close of play today.

Ultimately I should have read the agreement and cancelled within the 14 days but do you think they are trying it on with this charge and do you think they would persue for payment? 

I'm going to do my PPI interest claim myself and have worked out I should get about £800 back so I'm not too worried about paying the money. Just wondering where I stand from a legal point of view. Any guidance would be appreicated.

Brie

Ensure when you talk to HMRC that you are clear that the claim is to be paid directly to you and no one else.  These companies seem to get into all the systems and make it hard to cancel even if they have done nothing previously to help you.

sharkmeister

Yes thats what I was afraid of when I read the agreement. It's like giving them power to act on your behalf hence why they can look at other things outside of the PPI claim. I think I'll upload the agreement so people can see the small print before signing. They also take a hefty 48% commision when all you have to do is complete an R40 form which is available from HMRC.

dunstonh

Ultimately I should have read the agreement and cancelled within the 14 days but do you think they are trying it on with this charge and do you think they would persue for payment? 

It doesn't seem unreasonable.   Yes, we could bash you over the head for doing this but I think you are already doing that yourself.   However, they are allowed to charge for work done and in accordance with their contract.   Their method may be questioned in a court of law but the problem is that a fee based on hourly rate and costs would probably not be much different to £95 and would you really risk court fees for losing the case over £95?

I'm going to do my PPI interest claim myself and have worked out I should get about £800 back so I'm not too worried about paying the money. 

Remember that it is only the interest element tax and not the refund element that you declare to HMRC.  Plus, you need to include any other interest you received in the tax year via other sources.

This is not a reclaim you are doing.  It is effectively a short self assessment declaration to HMRC.  Really easy to do but you need to declare the right figures.  Otherwise you leave yourself open to paying too much (some people declared the whole amount in error).   Or you could suffer a penalty when HMRC get round to seeing the real figures (which is often many years later)

sharkmeister

Thanks Dunstonh. I was thinking about just paying the fee as in the grand scheme of things it would be small in relation to the whole amount I should be due back and would save me about £300 as their commission is 48%.

The interest amount I got back and declared on my self assessment was just under £4,000. This was input under income in the box called Taxed UK interest - the net amount after tax has been taken off. As the tax was taken off prior to me recieving the PPI payment that's where I've estimated the £800 due back. I am a normal rate taxpayer and am both employed full time and self employed part time.

I do need to check the original PPI payment though to be sure but as it's the amount of interest declared I think the £800 is realistic. Please correct me if I am wrong though as I don't want to get it wrong.

Dazed_and_C0nfused

sharkmeister said:

Thanks Dunstonh. I was thinking about just paying the fee as in the grand scheme of things it would be small in relation to the whole amount I should be due back and would save me about £300 as their commission is 48%.

The interest amount I got back and declared on my self assessment was just under £4,000. This was input under income in the box called Taxed UK interest - the net amount after tax has been taken off. As the tax was taken off prior to me recieving the PPI payment that's where I've estimated the £800 due back. I am a normal rate taxpayer and am both employed full time and self employed part time.

I do need to check the original PPI payment though to be sure but as it's the amount of interest declared I think the £800 is realistic. Please correct me if I am wrong though as I don't want to get it wrong.

You cannot use an R40 for a tax year you have completed a tax return for (or need to complete a return for).

Any overpayment would have been reflected in your Self Assessment tax calculation for that tax year. 

As far as HMRC are concerned there is nothing more you can or should do now, it was all resolved when you filed your tax return.

Shame you didn't appreciate that when authorising this company to do something they couldn't actually do 😳

sharkmeister

Dazed_and_C0nfused said:

sharkmeister said:

Thanks Dunstonh. I was thinking about just paying the fee as in the grand scheme of things it would be small in relation to the whole amount I should be due back and would save me about £300 as their commission is 48%.

The interest amount I got back and declared on my self assessment was just under £4,000. This was input under income in the box called Taxed UK interest - the net amount after tax has been taken off. As the tax was taken off prior to me recieving the PPI payment that's where I've estimated the £800 due back. I am a normal rate taxpayer and am both employed full time and self employed part time.

I do need to check the original PPI payment though to be sure but as it's the amount of interest declared I think the £800 is realistic. Please correct me if I am wrong though as I don't want to get it wrong.

You cannot use an R40 for a tax year you have completed a tax return for (or need to complete a return for).

Any overpayment would have been reflected in your Self Assessment tax calculation for that tax year. 

As far as HMRC are concerned there is nothing more you can or should do now, it was all resolved when you filed your tax return.

Shame you didn't appreciate that when authorising this company to do something they couldn't actually do 😳

So how do I claim back the money that was deducted from my PPI payment?

Dazed_and_C0nfused

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Thanks Dunstonh. I was thinking about just paying the fee as in the grand scheme of things it would be small in relation to the whole amount I should be due back and would save me about £300 as their commission is 48%.

The interest amount I got back and declared on my self assessment was just under £4,000. This was input under income in the box called Taxed UK interest - the net amount after tax has been taken off. As the tax was taken off prior to me recieving the PPI payment that's where I've estimated the £800 due back. I am a normal rate taxpayer and am both employed full time and self employed part time.

I do need to check the original PPI payment though to be sure but as it's the amount of interest declared I think the £800 is realistic. Please correct me if I am wrong though as I don't want to get it wrong.

You cannot use an R40 for a tax year you have completed a tax return for (or need to complete a return for).

Any overpayment would have been reflected in your Self Assessment tax calculation for that tax year. 

As far as HMRC are concerned there is nothing more you can or should do now, it was all resolved when you filed your tax return.

Shame you didn't appreciate that when authorising this company to do something they couldn't actually do 😳

So how do I claim back the money that was deducted from my PPI payment?

You can't.  You declared the income on your Self Assessment return and any overpayment would have been reflected on your Self Assessment calculation for that tax year.

For most people the tax overpaid is often just £200 (or less) so might just have reduced your Self Assessment liability, not be an actual refund as such.

Have you got the SA302 calculation for that tax year to hand?

sharkmeister

Dazed_and_C0nfused said:

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Thanks Dunstonh. I was thinking about just paying the fee as in the grand scheme of things it would be small in relation to the whole amount I should be due back and would save me about £300 as their commission is 48%.

The interest amount I got back and declared on my self assessment was just under £4,000. This was input under income in the box called Taxed UK interest - the net amount after tax has been taken off. As the tax was taken off prior to me recieving the PPI payment that's where I've estimated the £800 due back. I am a normal rate taxpayer and am both employed full time and self employed part time.

I do need to check the original PPI payment though to be sure but as it's the amount of interest declared I think the £800 is realistic. Please correct me if I am wrong though as I don't want to get it wrong.

You cannot use an R40 for a tax year you have completed a tax return for (or need to complete a return for).

Any overpayment would have been reflected in your Self Assessment tax calculation for that tax year. 

As far as HMRC are concerned there is nothing more you can or should do now, it was all resolved when you filed your tax return.

Shame you didn't appreciate that when authorising this company to do something they couldn't actually do 😳

So how do I claim back the money that was deducted from my PPI payment?

You can't.  You declared the income on your Self Assessment return and any overpayment would have been reflected on your Self Assessment calculation for that tax year.

For most people the tax overpaid is often just £200 (or less) so might just have reduced your Self Assessment liability, not be an actual refund as such.

Have you got the SA302 calculation for that tax year to hand?

I declared the amount after tax was taken off. So given that Barclays paid £800 direct to inland revenue. That to me is a tax overpayment. Looking at the SA302 for that year its got interest from banks at £4,743 which is the gross PPI payment. It's then got tax deducted through interest recieved at £948.75.

So are you saying that it should be an adjustment of the difference of the £800 paid by Barclays and the £948.75 on my SA302?

If so, then am I due a rebte of £148.75? Apologies I'm no tax expert.

Dazed_and_C0nfused

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Thanks Dunstonh. I was thinking about just paying the fee as in the grand scheme of things it would be small in relation to the whole amount I should be due back and would save me about £300 as their commission is 48%.

The interest amount I got back and declared on my self assessment was just under £4,000. This was input under income in the box called Taxed UK interest - the net amount after tax has been taken off. As the tax was taken off prior to me recieving the PPI payment that's where I've estimated the £800 due back. I am a normal rate taxpayer and am both employed full time and self employed part time.

I do need to check the original PPI payment though to be sure but as it's the amount of interest declared I think the £800 is realistic. Please correct me if I am wrong though as I don't want to get it wrong.

You cannot use an R40 for a tax year you have completed a tax return for (or need to complete a return for).

Any overpayment would have been reflected in your Self Assessment tax calculation for that tax year. 

As far as HMRC are concerned there is nothing more you can or should do now, it was all resolved when you filed your tax return.

Shame you didn't appreciate that when authorising this company to do something they couldn't actually do 😳

So how do I claim back the money that was deducted from my PPI payment?

You can't.  You declared the income on your Self Assessment return and any overpayment would have been reflected on your Self Assessment calculation for that tax year.

For most people the tax overpaid is often just £200 (or less) so might just have reduced your Self Assessment liability, not be an actual refund as such.

Have you got the SA302 calculation for that tax year to hand?

I declared the amount after tax was taken off. So given that Barclays paid £800 direct to inland revenue. That to me is a tax overpayment. Looking at the SA302 for that year its got interest from banks at £4,743 which is the gross PPI payment. It's then got tax deducted through interest recieved at £948.75.

So are you saying that it should be an adjustment of the difference of the £800 paid by Barclays and the £948.75 on my SA302?

If so, then am I due a rebte of £148.75? Apologies I'm no tax expert.

You are overthinking it.

You have declared the net interest and that has been crossed up to account for the tax deducted.

How has the £4,743 then been taxed further down the calculation?

sharkmeister

Dazed_and_C0nfused said:

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Thanks Dunstonh. I was thinking about just paying the fee as in the grand scheme of things it would be small in relation to the whole amount I should be due back and would save me about £300 as their commission is 48%.

The interest amount I got back and declared on my self assessment was just under £4,000. This was input under income in the box called Taxed UK interest - the net amount after tax has been taken off. As the tax was taken off prior to me recieving the PPI payment that's where I've estimated the £800 due back. I am a normal rate taxpayer and am both employed full time and self employed part time.

I do need to check the original PPI payment though to be sure but as it's the amount of interest declared I think the £800 is realistic. Please correct me if I am wrong though as I don't want to get it wrong.

You cannot use an R40 for a tax year you have completed a tax return for (or need to complete a return for).

Any overpayment would have been reflected in your Self Assessment tax calculation for that tax year. 

As far as HMRC are concerned there is nothing more you can or should do now, it was all resolved when you filed your tax return.

Shame you didn't appreciate that when authorising this company to do something they couldn't actually do 😳

So how do I claim back the money that was deducted from my PPI payment?

You can't.  You declared the income on your Self Assessment return and any overpayment would have been reflected on your Self Assessment calculation for that tax year.

For most people the tax overpaid is often just £200 (or less) so might just have reduced your Self Assessment liability, not be an actual refund as such.

Have you got the SA302 calculation for that tax year to hand?

I declared the amount after tax was taken off. So given that Barclays paid £800 direct to inland revenue. That to me is a tax overpayment. Looking at the SA302 for that year its got interest from banks at £4,743 which is the gross PPI payment. It's then got tax deducted through interest recieved at £948.75.

So are you saying that it should be an adjustment of the difference of the £800 paid by Barclays and the £948.75 on my SA302?

If so, then am I due a rebte of £148.75? Apologies I'm no tax expert.

You are overthinking it.

You have declared the net interest and that has been crossed up to account for the tax deducted.

How has the £4,743 then been taxed further down the calculation?

Sorry I think I'm getting confused.

At the bottom it says how we worked out your tax it has listed under Savings interest from banks or building socieities:

Basic rate band at nil rate £1,000 x 0% = £0.00 Tax
Basic rate £3,742 x 20% = £748.60 Tax (This is the amount I declared on my self assessment and tax has been paid accordingly)

then in the minus tax deducted on the line Interest recieved from UK banks and Building societies it has £948.75.

Does this suggest they have already recieved £948.75 paid from banks on my behalf which has been deducted from the PPI amount I was due. This is the statuatory interest I recieved to put me back to my original position and therefore should not be taxed? Really confused now. LOL.