(Maybe) Silly Tax Question

[abstibus]

Could someone please explain what a sum 'net of tax' means?
Thanks

[factor-fiction]

For income/dividends it means after tax has been deducted or the cost before tax (VAT) is added.

What are the circumstances?

[RocW]

iF IT IS EARNINGS, IT PROBABLY MEANS "AFTER TAX HAS BEEN DEDUCTED" AS IN "iNTEREST PAID NET OF TAX; IF IT'S SOMETHING YOU ARE BUYING, IT'S PROBABLY THE AMOUNT BEFORE VAT IS ADDED. SORRY ABOUT THE SHOUTING; CAPS LOCK IS ON.

[factor-fiction]

Is it a PPI misselling compensation payment? The 8% interest payment elemnt will attract tax (just like bank interest attracts tax), so the payment may be made 'net of tax'- ie after tax has been dediucted

[abstibus]

Yes factor
It's the PPI repayment. I just wondered how mad I could go lol.
I'm a reasonably newbie to SA so don't want the ogres chasing me.
I know I have to declare it on my next SA, but can I now assume I won't have to pay tax on it again?

[abstibus]

Roc
I always feel like shouting when the word 'tax' is mentioned too!!

[factor-fiction]

It depends at what rate the tax has been deducted- 10% or 20%. (I'm sure I had some tax deducted at only 10% once as it was classed as a dividend payment). If you declare it as tax already paid you won't have to pay it again. You won't have to declare the rest of the PPI payment either as (apart from the interest element) that isn't taxable.

[abstibus]

Thanks a lot for your time and responses. factor. That is very helpful indeed, so I can spend with a clear conscience.
a-m

[albaqwerty]

legs, it won't be with a clear mind, until you treat Welshy )

Phone your local tax office just to clarify things, rules change so ofen they don't even seem to be keeping up with them, although Factor's darned good/

[abstibus]

Albs
Have been too late in mornings to join boaty's thread (working late so waking later).
I see welshy is 'threatening' to come to Ireland. I could spend the money on a plane ticket outta here!!
Will phone tax office as you recommend. Thanks
a-m

[rojash]

"SORRY ABOUT THE SHOUTING; CAPS LOCK IS ON."

??

[WELSHYORKIE]

Busty Legs - I heard that........

[abstibus]

Welshy
A bit of practice for you before you go to meet the natives.
http://www.bbc.co.uk/voices/recordings/group/ulster-omagh.shtml