1 or 2 ppi questions

[SUNDERLAND1]

My ex partner has recently had PPI refunded from Lloyds and

 

 

now has had letters from natwest upholding her claims with the them

( 6 in all off various personal loans, and overdraught protector type policies.

 

 

The letters from natwest mention using any monies due to pay off any outstanding debt with them if she has any such debt.

 

 

Can they do this as she has a debt with them off a personal loan and the overdraft from her personal bank account she had with them ???

 

 

Also regarding the refunds she got from Lloyds, she paid tax on the 8% interest

 

 

can this be claimed back ???

 

 

She is a taxpayer but is self employed and only averages around 5k profit per year,

 

 

obviously only around half her personal tax allowance,

 

 

does this make any difference ???

 

 

Thanks

[dx100uk]

only if the accounts are in arrears can they offset.

 

 

as for the tax.

 

 

Any payments made after 1 October 2013 must have tax at 20% deducted from the 8% interest.

HMRC tax helpline on 0300 200 3300 should be able to assist if a reclaim is needed

Ask them to send you an R185 certificate

[SUNDERLAND1]

Yes the accounts are in arrears

 

 

no payments made for a number of years

 

 

in fact they were about 15 months off stat barred.

 

 

I guess the ex has timed her PPI reclaim badly with natwest

she should have hung on for 15 months or so.

 

 

an they use the whole of the PPI award to offset or only certain elements of it ???

 

 

By that i mean the PPI premium itself,

the interest paid on the PPI and

then obviously the 8% interest ???

 

 

As for the tax i assume there is certain criteria to be met to be able to make a tax reclaim ???

 

 

If so is not earning upto your personal tax allowance one of those criteria ???

 

 

Heres hoping.

 

 

Thanks

[dx100uk]

inside or outside of 6yrs

if NatWest still own the debts

they can offset

 

 

they cannot offset the 8% part.

 

 

dx

[SUNDERLAND1]

Ok thanks for the info DX.

 

 

On some of her claims the 8% is actually more than the PPI and its associated interest,

so doesnt look as bleak as i thought she should still get a fair sum back.

 

 

As for the tax im assuming your not too sure on the reclaiming criteria so i will look into that further.

 

 

Once again thanks for your help.

[ims21]

As your partner is self employed, they will almost certainly complete a SA return each year.

 

The 8% and the tax deducted should be declared on the return so that the income can be included in their tax calculations for the year.

 

Only then will you know whether there is any tax refund due or not.

 

If they are not a taxpayer due to low income and if the interest doesn't push the income above the taxable limit then I would contact HMRC with a view to getting the tax deducted at source refunded.