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Ask Your Own Question, Chartered Certified Accountant
Category: UK Tax
Satisfied Customers: 4996
Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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I have received refund from LLoyds sold PPI and they

Customer Question

I have received refund from LLoyds for mis sold PPI and they have advised that I am entitled to a refund of the basic rate tax they have deducted.Please help
Submitted: 2 years ago.
Category: UK Tax
Expert:  Lane replied 2 years ago.
Hi,I can help. What they have likely told you is that your are due a refund and that they will deduct taxes for you so that you will not owe additional tax at declaration time..The compensation itself is not taxed so any money you owe will be a small proportion of the overall payout. - But again some PPI sellers deduct tax from this redress, but not all do..Sounds like your company IS deducting the tax, so there will be NO additional tax owed by you for this payment protection insurance (PPI) mis-selling.Let me know you questions from here....Lane
Expert: replied 2 years ago.
Hello and welcome to the site.
Thank you for requesting I help you with your question.
You state Lloyds Bank has advised you that you are entitled to a refund of tax deducted at basic rate on the refund of mis-sold PPI.
Please advise if you pay tax on your earnings at present or is your income below your personal allowances for income tax purposes?
Also are you referring to tax on the interest that was added to the compensation value.
Many thanks