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

[TUTTSI]

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.

[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

[TUTTSI]

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

[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 !!!

[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

[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).

[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.

[Angry Cat]

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

BBC iPlayer - Money Box: 12/11/2011

[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......

...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!

[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

[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".

[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.

[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......

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.