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......

I was just 'echoing' Turbo's earlier post, Tuttsi - but we have to beware of 'Chinese Whispers' with this at the moment, I guess. My belief was that they deduct tax ONLY if we tell them to do so with our own 'mandate.' I could well be wrong, as I have NEVER given them such a mandate in my case. LOL - any savings I have go under the mattress, and in the biscuit tin these days !!! I'm no plonker, Rodney !!!

So - PLEASE don't see this as scaremongering !!! I believe that - if we do nothing, then the 'default' is that we do NOT give our bank permission to deduct tax from our investment income.

As a self-employed, I do my own accounts and submit the 'simple' self-employed tax return. I claim bank charges and bank interest as an expense - BUT - I should mention that I do not have to categorise such expenses in the simple return. I have, however, survived an Inland Revenue 'enquiry' in recent years - where they asked for all my documentation (ie., records of income and original expenditure receipts). I got a clean bill of health, with just a bit of advice about claiming capital expenses on some items...for which I thanked them...naturally. We parted company on good terms, I feel.

As regards the Sempra idea - I really just meant the principle of the thing -BUT - the IR appear to be in collusion with the FSA over this, so there might be more correlation than we think. This - I suspect - is EXC's territory, though, and I thus reverse out of the limelight !!!

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

Then that is totally out of order and Bill is right a Sempra style case should be bought against the Revenue if they are taking the tax on additional interest as what right do they have for doing this?

''A spokesman for HM Revenue & Customs told Radio 4's Money Box programme: "No tax is generally due on the repayment element of compensation paid to those missold PPI. However, the additional interest is taxable - in line with other compensation claims."

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.''

BBC News - Taxman to make money from Payment Protection Insurance

[EXC]

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

''A spokesman for HM Revenue & Customs told Radio 4's Money Box programme: "No tax is generally due on the repayment element of compensation paid to those missold PPI. However, the additional interest is taxable - in line with other compensation claims."

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.''

BBC News - Taxman to make money from Payment Protection Insurance

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

Are they deducting tax from everyone or just self employed's?

Do the banks have a mandate to do this? I would say they don't. Unless the Inland Revenue have advised them to do this.

Bill as a self employed do you claim bank charges and interest on your tax return thus reducing the amount of tax you would pay?

If some self employed don't use bank charges and interest on their tax return then I do not see how they would have the power to decide and to recover taxes from these PPI refunds. It is not their call surely to deduct tax from refunds unless they were business accounts.

When you make an insurance claim, the insurers will always ask if you are VAT registered so that they don't have to pay the VAT over but they ask first they don't assume.

Some banks pay interest net of tax and some pay gross if we are lucky enough to have earned any interest.

If anyone has had tax deducted at source from their refunds and they are not self employed and if self employed and have not claimed this against tax on previous tax returns I would have thought there would be a case to take the banks to task over this and Bill yes your Sempra idea is worth noting. It is not though the Inland Revenue it would be against the banks.

[Bill-K]

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.

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

Hi tutts hows your little ole darlin today (cat)

she has slept all day lol

[cappo]

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

It would only be taxable surely if one was self enployed and used the bank charges and interest in the accounts to offset tax only then can they deduct tax at source.

Hi tutts hows your little ole darlin today (cat)

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

It would only be taxable surely if one was self enployed and used the bank charges and interest in the accounts to offset tax only then can they deduct tax at source.

[cappo]

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

I don't get it. It's compensatory interest - awarded for loss of use of money which we have already earned and paid tax on. It's NOT an investment we have chosen to make - and at 8% simple interest rate, it surely cannot be considered as one.

How on earth can this be justified ?

It's just backdoor robbery billy boy, the government feel they can do whatever they want i don't know who are the bigger crooks the banks or the government. :tinysmile_cry_t:

[Bill-K]

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

I don't get it. It's compensatory interest - awarded for loss of use of money which we have already earned and paid tax on. It's NOT an investment we have chosen to make - and at 8% simple interest rate, it surely cannot be considered as one.

How on earth can this be justified ?

[EXC]

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

Question: Will all those people who got 8% back in last 7 years (Tax window for Taxman investigations I believe) declare it--I think not-lol

Turbs

I doubt it as I would imagine that most of those people were genuinely unaware that the interest was taxable.

[Turboman]

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

Hmm Exc

Bit of a mess--RBS deducting at source and the others not----and telling customers to "declare it"

In actual fact Exc--Halifax & others been putting this in their refund letters for a few years-not just PPI but straight bank charges claims

Question: Will all those people who got 8% back in last 7 years (Tax window for Taxman investigations I believe) declare it--I think not-lol

Turbs

Millions face unexpected tax bill over PPI

Millions face an unexpected tax bill over PPI compensation. Customers who have waited weeks, sometimes months for their money will have to pay tax on the interest they receive. It was agreed with the regulator - the FSA - that victims of PPI mis-selling would receive interest at 8% - but that could come down significantly after the revenue have had their cut.

If you want to contact HMRC regarding tax on PPI contact the Income Tax enquiry line on 0845 300 0627 or write to PO Box 1970, Liverpool L75 1WX.

Listen to the piece on BBC Money Box here BBC iPlayer - Money Box: 12/11/2011

[EXC]

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

Millions face unexpected tax bill over PPI

Millions face an unexpected tax bill over PPI compensation. Customers who have waited weeks, sometimes months for their money will have to pay tax on the interest they receive. It was agreed with the regulator - the FSA - that victims of PPI mis-selling would receive interest at 8% - but that could come down significantly after the revenue have had their cut.

If you want to contact HMRC regarding tax on PPI contact the Income Tax enquiry line on 0845 300 0627 or write to PO Box 1970, Liverpool L75 1WX.

Listen to the piece on BBC Money Box here BBC iPlayer - Money Box: 12/11/2011

[EXC]

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

Thought this was rather amusing.

[seller 17]

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

I didn't realise that, so I take it then if they are providing for Lloyds they will do so for other banks/businesses that have ongoing backlogs of PPI complaints?

See this link;

http://www.thisislondon.co.uk/standa...in-the-city.do