TaxCorporate TaxCheck for tax owed on PPI mispayments

Check for tax owed on PPI mispayments

Tax on interest could be due on PPI repayments, warns HMRC

CLAIMANTS who won payment for mis-sold payment protection insurance (PPI) will have to pay tax on the interest earned, according to HM Revenue & Customs.

Billions of pounds have been set aside by banks after the FSA won a judicial review forcing them to pay out on mis-sold PPI claims. HMRC, on BBC Radio Four’s Moneybox programme, said that had the money not been used on PPIs, then it would have been taxable if invested in a savings account.

Individuals would have to check whether the banks had automatically deducted tax on interest.

Related Articles

Watch out when winding up

Corporate Tax Watch out when winding up

2m Emma Rawson, ATT Technical Officer
HMRC large business tax enquiry duration rises to 3 years

Corporate Tax HMRC large business tax enquiry duration rises to 3 years

4m Emma Smith, Managing Editor
‘Google tax’ nets HMRC £281m

Corporate Tax ‘Google tax’ nets HMRC £281m

8m Emma Smith, Managing Editor
OTS report: Corporation tax should follow accounts

Corporate Tax OTS report: Corporation tax should follow accounts

10m Alia Shoaib, Reporter
HMRC tax evasion assistance requests double in five years

Corporate Tax HMRC tax evasion assistance requests double in five years

11m Emma Smith, Managing Editor
Spring Budget 2017: Making Tax Digital

Business Regulation Spring Budget 2017: Making Tax Digital

1y Shereen Ali, Deputy Editor
Tax fraud loses HMRC £16bn

Corporate Tax Tax fraud loses HMRC £16bn

1y Emma Smith, Managing Editor
HMRC nets £2.6bn in corporate tax from big businesses

Corporate Tax HMRC nets £2.6bn in corporate tax from big businesses

1y Accountancy Age editorial