Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

[Bill-K]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

all credit card claims now done through post and internet and being rejected and are then going on to be rejected by fos, dont reckon the banks will have to pay out as much as they have provided for, unles there is self employed or pre existing medical condition you dont have a chance and fos wont back you up

I don't like the sound of that, MBD - can you tell us the source of that info. I'm currently working on a CC PPI claim where the agreement clearly shows PPI NOT wanted, but it was charged anyway. They better not throw that one out !!!

[MBD23]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

all credit card claims now done through post and internet and being rejected and are then going on to be rejected by fos, dont reckon the banks will have to pay out as much as they have provided for, unles there is self employed or pre existing medical condition you dont have a chance and fos wont back you up

[di30]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Especially as the Banks, in many cases, are not paying the correct rate of interest.
The 8% simple rate of interest will leave many out of pocket, thus accounts will not revert to the status quo.

The whole issue is an insult to consumers!

I second that Angry Cat.

Was checking these matters OTR and it seems that someone had rang the HMRC about the PPI and they did not have a clue what all this was about, but was just told to send in copies of the details by post and they will take a look.

They said if they need to they will adjust the tax code accordingly.

[Angry Cat]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Deprived once and deprived once again!!!

I think it should be the duty of the bank/ business in the first place and they should not leave the customer responsible in my opinion. (Banks work in finance and when calculating its a matter of them just dealing with the tax at the same time, just like what happens when you get paid a wage from an employer).

Not everyone knows how these Tax issues work, its just like being given another punishment!

Especially as the Banks, in many cases, are not paying the correct rate of interest.
The 8% simple rate of interest will leave many out of pocket, thus accounts will not revert to the status quo.

The whole issue is an insult to consumers!

[cappo]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Deprived once and deprived once again!!!

I think it should be the duty of the bank/ business in the first place and they should not leave the customer responsible in my opinion. (Banks work in finance and when calculating its a matter of them just dealing with the tax at the same time, just like what happens when you get paid a wage from an employer).

Not everyone knows how these Tax issues work, its just like being given another punishment!

Hi Di a double whammy from the bankers my woman, kind of an early christmas present, lets not say that the hmrc never give us anything lol, i should be alright as i don't pay tax as i'm classed as disabled and on sick leave but it doesn't help the poor blighters who as you say my lovely are getting a double kick in the teeth.

[di30]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Deprived once and deprived once again!!!

I think it should be the duty of the bank/ business in the first place and they should not leave the customer responsible in my opinion. (Banks work in finance and when calculating its a matter of them just dealing with the tax at the same time, just like what happens when you get paid a wage from an employer).

Not everyone knows how these Tax issues work, its just like being given another punishment!

[cappo]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

They said that "Nobody should be worse off, as had the customer not purchased PPI, but kept that money in an interest-bearing account, the interest received would have been taxable.''



Can I also throw into the ring, "that my contributions would of been invested into my Cash ISA account, that this account is Tax free and therefore Mr Revenue your point is not valid".

The government want it all ways, shame they weren't doing anything to "earn" the money like forcing the banks to pay it back to us in a timely fashion, as usual they have there grabbing hands ready but they don't want to have to do anything for it.

[seller 17]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

They said that "Nobody should be worse off, as had the customer not purchased PPI, but kept that money in an interest-bearing account, the interest received would have been taxable.''



Can I also throw into the ring, "that my contributions would of been invested into my Cash ISA account, that this account is Tax free and therefore Mr Revenue your point is not valid".

[Angry Cat]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

PPI compensation liable to tax deduction - November - 2011 - Which? News

[Angry Cat]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

...I also disagree with the assertions made that 8% is a good rate. It might be if it were calculated as compound interest, like all other commercial interest. As simple interest, it is an insult.

Absolutely agree, Bill-K!

[Bill-K]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

I finally got to listen to the report - thanks AC. It appears that the PPI refund itself is not taxable, and it IS just the 8% compensatory interest. I personally would argue with my tax office that, as this is actually compensation for loss of use and enjoyment of my own money through unlawful activity by a finance company - then to automatically assume that I would have deposited it in a savings account is a FURTHER deprivation of my right to a choice as to what use I would have put that money to.

I also disagree with the assertions made that 8% is a good rate. It might be if it were calculated as compound interest, like all other commercial interest. As simple interest, it is an insult.

[Angry Cat]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

BBC iPlayer - Money Box: 12/11/2011

[Paul210]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

I thinks HMRC may have an argument for taxing interest, the point of complensatory interest is the argument that had you not been missold then the additional monies could have been saved and put in a bank account on which you would have earned interest.

Were this the case then that interest would have been taxable, therefore HMRC treat compensatory interest as taxable. The fine print of tax statute would need to be looked at for a definative answer but from a common sense point of view I can where they are coming from.

[Bill-K]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

Yeah, I think that was the approximate source of my thinking on that aspect, Cappo. Cheers, guv'nor, and thanks for the backup there.

Just reading further into the quote that EXC posted, however, I'm beginning to think that we may have misunderstood the HMRC spokesperson. It may well be that what was being said was that the ACCOUNT interest (when reclaimed) was possibly taxable - and NOT the paltry 8% 'Compensatory Interest.'

Confused ? You ain't alone.

I get the feeling that someone, somewhere, is deliberately making a dog's dinner out of this.

I'm off for a Chinese (he whispered).

[cappo]

Re: Latest Update on PPI Judicial Review - NO APPEAL - get your claims in......

I must admit, I'm a 'cat' person - it's probably their naughty nocturnal nature that I identify with !!! Love the critters.

I really hope someone takes them to task over this, with a 'Sempra' style challenge, because - as Cappo says - it's backdoor robbery. Since when has compensation been taxable ?

I guess, as EXC has implied, it's maybe not such a big deal to most of us, where our claims include maybe a few hundred quid in compensatory interest. I'm self-employed, and I've a dashed good mind to ask the Inland Revenue EXACTLY what this money is classed as - for the purposes of filling in my Tax Return accurately. It's not earned income, it's not investment income - it's friggin' compo, DESPITE the fact that it has been awarded at a disgustingly low rate, IMHO.

I'm not sure on this - and maybe Tuttsi can put me right - but isn't there a 'mandate' arrangement whereby we can elect to have the interest on our investments (such as savings) paid to us NET of tax ? Unless we have given our bank this mandate, then I believe the default of paying interest GROSS would apply. Again, confusion abounds, I reckon, as this may be the different scenario which Turbo has mentioned. I would personally challenge my bank if they deducted tax at source from my measly 8% compo - on the grounds that it is CLEARLY not investment income.

Hi bill i don't know if this is of any use to anyone but here it is anyway mates




HM Revenue Customs: Getting tax-free interest on savings or claiming tax back