I have been awarded a PPI claim, but claim company states their fee is 30% + 20% vat. I have no qualms with this, BUT they state the 30% is based on GROSS amount offered not the net amount. The difference between gross and net is obviously tax deducted by original lender at source before they issue net amount to me. Is my claims company right in what they are doing as I am basically being penalised twice, by paying the tax then paying claims Company based on gross amount. Thanks for any help.
I appreciate what you guys are saying, but are they right to base their fee on gross amount as I have been taxed on this, would have thought it would be based on what I am actually receiving
I assume it's only the interest bit that's taxed. If so it seems reasonable to charge you based on the gross amount since our liability to tax is a matter between you and HMRC. You are allowed to receive £1000 interest a year tax free and depending on your tax status you may be able to reclaim some tax on the interest back from HMRC. Can you tell us what the gross interest figure was?