Basic Rate Tax Deductions on PPI Refund!!

[THEH1TMAN]

Ive just recieved a Redress Statement for a missold PPI Claim I made against Aviva.
The amounts look to be ok but at the bottom of the statement there is a section which says "Basic Rate Tax deduction of 20% from the 8% Simple Interest on respective monthly payments"
Within the letter it states that this is a new legislation which is contained within the Finance Bill 2013 and I may be able to reclaim the tax from HMRC!
Is this correct?

Regards

Alan

[di30]

Re: Basic Rate Tax Deductions on PPI Refund!!

Well done on your success!

From what I am aware of, some will autmatically deduct the tax, as if your a standard tax payer, however if you dont pay tax at all, I believe your able to request a refund of what they paid.
Does it say anything about if your a higher tax payer to contact the HMRC?

[THEH1TMAN]

Re: Basic Rate Tax Deductions on PPI Refund!!

Just states that this is a new legislation which is contained within the Finance Bill 2013 and I may be able to reclaim the tax from HMRC.

[di30]

Re: Basic Rate Tax Deductions on PPI Refund!!

Hiya
Sorry for the delay in getting back to you.

If uncertain maybe contact the HMRC, then they may arrange to send you a form to complete for the refund of the tax.

[Joico]

Re: Basic Rate Tax Deductions on PPI Refund!!

Hi. From 1 October 2013, due to new legislation , tax at 20% is deducted from 8% interest figure and paid over to HMRC on your behalf. If you don't pay tax, you can, at the end of the tax year claim back the tax deducted. You will however, need to contact the company who paid redress and request a certificate of tax deducted. This is what you will send to HMRC after 5 April.