Help after ppi now have a huge tax bill
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This is the actual letter word for word less the figures as would rather not state them!
The total sum payable will be ........ (prior to tax deductions)which has been calculated in accordance with guidelines issued by the financial Ombudsman Service.
Lloyds bank will deduct ......... for tax purposes & you will receive a refund of ..........
Then it just goes on about their fee etc
So can you see how I!!!8217;mconfused,I don’t understand tax stuff at the best of times I just assumed this company do all the leg work & you get a sum of money at the end to simply enjoy
The very helpful man I spoke to at HMRC Was a little confused too, he couldn’t work out how the figure paid was calculated!0 -
Unfortunately without the actual figures we can't really comment on the correctness or otherwise of the calculations.
The only involvement the Claims company would have in respect of tax is charging you VAT on their % fee of the total redress (before income tax deductions).
Lloyds would have been responsible for deducting income tax at 20% on the interest element only of the redress and forwarding the tax deduction to HMRC.
What exactly does the letter from HMRC say, have they given you a calculation?
Was the complaint via the CMC your husband made a joint or single complaint?0 -
The letter from HMRC says
TAX calculation for the year 6 April 2017 to 5 April 2018 you have paid too little tax & owe HMRC £.......
When I spoke to the man at HMRC regards my husbands employers tax code etc is all correct so no issue there!its the savings income has messed it up & the only savings that year was the ppi & that does show on the HMRC letter
We both tried to claim but only my husband was successful0 -
Previous posters are correct. It is possible for you to get any proper help on here without the real figures.
Have you received a P800 calculation from HMRC explaining why he owes the tax?
Can you post the details from that and say whether the interest agrees with the interest linked to the PPI claim?
And do you know who told HMRC about the interest? Was it hubby or the PPI company?0 -
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It’s mentioned in the letter the HMRC guy suggested i set up a personal tax account online to keep upto date
There is a breakdown on the page but I don’t understand it.
Sorry I’m hopeless but do appreciate your help with the little information I’m giving you0 -
You don't have to understand it, you have to provide the details so others on here who are trying to help you can understand it.
To be honest you have an uphill battle getting help on here from the moment you said your hubby had used a claims company (:() but neither you nor he can change that now.
Do you live in Scotland? The threshold for higher rate tax is much lower in Scotland so more chance hubby would be higher rate payer.
In one post you say you don't earn enough to pay tax. Have you ever applied to HMRC for something called Marriage Allowance?
Could hubby earn £40k+?
Roughly how much was the PPI interest?0 -
Im pretty sure it’s all to do with savings income & allowances
There was income tax taken from the savings income(ppi)
That was £11852.00 income tax on that was £1413.46
His personal allowance is £11500
It waffles on then says total tax paid
What he’s paid
Then you owe HMRC £758 ouch0 -
£11,852 seems a huge amount of interest. The PPI amount must have been enough to pay a mortgage off!!
What is unusual is that the tax deducted at source isn't 20%.
Normally for PPI interest of £11,852 you would see tax deducted of £2370, not £1413.0 -
The award was£11852
Income tax on that was £14130
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