johnny Posted June 20, 2018 Report Share Posted June 20, 2018 I thought I'd have a go at this Ppi job and have received some money. I went through one of these ppi firms. They have charged me their % on the full amount before Hmrc have taken their bit, is this right. I have no problem paying them but should it not be after tax? Anyone one got any views? Yes I know I should of done it myself cheers John Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted June 20, 2018 Report Share Posted June 20, 2018 Why are you paying tax on it? Quote Link to comment Share on other sites More sharing options...
Jaymo Posted June 20, 2018 Report Share Posted June 20, 2018 Just now, ferguson_tom said: Why are you paying tax on it? Because it is subject to Income Tax at 20%, and if your a higher rate payer then it has to be declared too Your effectively gaining from the interest- and just like any normal savings account ( except an ISA) , your required to pay Quote Link to comment Share on other sites More sharing options...
johnny Posted June 20, 2018 Author Report Share Posted June 20, 2018 3 minutes ago, ferguson_tom said: Why are you paying tax on it? I don’t know surely I paid tax on the payment first time round Quote Link to comment Share on other sites More sharing options...
ferguson_tom Posted June 20, 2018 Report Share Posted June 20, 2018 43 minutes ago, Jaymo said: Your effectively gaining from the interest- and just like any normal savings account ( except an ISA) , your required to pay So shouldnt you just be paying tax on the interest not what you originally paid in? Maybe one of the other benefits of just doing it yourself you get a cheque from the company who mis-sold you the ppi and it just goes straight into the bank account. I am sure thousands of people are unaware that you are meant to to declare it as income. Quote Link to comment Share on other sites More sharing options...
Newbie to this Posted June 20, 2018 Report Share Posted June 20, 2018 (edited) You only have to pay TAX on any interest earned. The original sum plus the compensation are tax free. Not sure about what the firm can charge but it should be in their terms in black and white. Some ppi companies already stop the TAX so I'd check thoroughly before paying anything. It's definitely a should have done it yourself job. Edited June 20, 2018 by Newbie to this Quote Link to comment Share on other sites More sharing options...
Jaymo Posted June 20, 2018 Report Share Posted June 20, 2018 The Bank will deduct it for you, remind me later and I will dig out my paperwork Quote Link to comment Share on other sites More sharing options...
loriusgarrulus Posted June 20, 2018 Report Share Posted June 20, 2018 4 hours ago, rimfire4969 said: Now I am confused, which is not that unusual. Wrong thread. Quote Link to comment Share on other sites More sharing options...
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