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  • FIRST POST
    • Kjb42
    • By Kjb42 13th Apr 18, 11:56 PM
    • 1Posts
    • 0Thanks
    Kjb42
    PPI refund and tax
    • #1
    • 13th Apr 18, 11:56 PM
    PPI refund and tax 13th Apr 18 at 11:56 PM
    Iíve just had a PPI refund off a credit card.
    However on the breakdown of the claim x amount has been paid for tax.
    Iím a little confused as to why Iíve had to pay tax?
    I was mis sold the PPI, got in debt because of the credit card and payments and just wondering why I should be paying tax on compensation that I deserve?
    It wasnít my fault what the banks did and got up to,so why am I being made to pay more money or taxed again on money Iíve probably already been taxed on.
    At the end of the day what Iím saying is why am I having to pay money out when I was basically robbed of money by the bank?
Page 1
    • Moneyineptitude
    • By Moneyineptitude 14th Apr 18, 12:01 AM
    • 20,000 Posts
    • 10,981 Thanks
    Moneyineptitude
    • #2
    • 14th Apr 18, 12:01 AM
    • #2
    • 14th Apr 18, 12:01 AM
    wondering why I should be paying tax on compensation that I deserve?
    Originally posted by Kjb42
    If you are are a taxpayer, you pay tax.

    Sorry.
    • TrickyDicky101
    • By TrickyDicky101 14th Apr 18, 7:03 AM
    • 2,983 Posts
    • 1,924 Thanks
    TrickyDicky101
    • #3
    • 14th Apr 18, 7:03 AM
    • #3
    • 14th Apr 18, 7:03 AM
    You only pay tax on the interest element of any compensation you receive and not the refund of the original PPI you paid.

    Depending on your own circumstances you may well be able to reclaim the tax deducted from HMRC by completing form R40:

    https://www.gov.uk/apply-tax-free-interest-on-savings
    • Moneyineptitude
    • By Moneyineptitude 14th Apr 18, 8:25 AM
    • 20,000 Posts
    • 10,981 Thanks
    Moneyineptitude
    • #4
    • 14th Apr 18, 8:25 AM
    • #4
    • 14th Apr 18, 8:25 AM
    You only pay tax on the interest element of any compensation you receive and not the refund of the original PPI you paid.
    Originally posted by TrickyDicky101
    I think the OP is clearly referring to the compensation element rather than the refund element of the redress when he says;
    wondering why I should be paying tax on compensation that I deserve?
    Originally posted by Kjb42

    I agree he should investigate the possibility of HMRC refunding the tax though....
    • TrickyDicky101
    • By TrickyDicky101 14th Apr 18, 11:26 AM
    • 2,983 Posts
    • 1,924 Thanks
    TrickyDicky101
    • #5
    • 14th Apr 18, 11:26 AM
    • #5
    • 14th Apr 18, 11:26 AM
    Paying one's legal dues of tax is a biatch ain't it? ;-)
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