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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3816
Experience:  FCCA FCMA CGMA ACIS
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I have used a claims firm to claim PPI. They were successful

Customer Question

Hi, I have used a claims firm to claim PPI. They were successful and have sent me their invoices. However RBS have calculated my refund and have deducted income tax. At 75 I still pay income tax on my pensions. The claims firm have calculated their fees whilst using the higher figure before tax. Their fee is 33% which includes tax @ 20%. Should I be paying the vat on my 20% tax? Yours Joe Sadler
Submitted: 8 months ago.
Category: Tax
Expert:  bigduckontax replied 8 months ago.

Hello Joe, I am Keith, one of the experts on Just Answer, and pleased to be able to help you with your question.

Bad news, I regret; VAT is a turnover tax, so the treatment by the claims firm is correct.

I am so sorry to have to rain on your parade.

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