Tax May be Due on Payment Protection Insurance Claim Awards (PPI) [14th Nov 2011]
People who have successfully claimed money back through payment protection insurance claims are being warned that they are likely to have to pay tax on the interest added portion of their claim. A spokesperson for the HMRC has stated that the average 8% interest element will be liable for tax as it was in addition to the amount originally paid for the insurance and it would have been taxable if it had been in an interest bearing account instead. It is thought that some banks will have already deducted this tax before they paid their customers, but claimants are being urged to check if this is the case. Most banks say they have not deducted that tax, but Natwest has. Loan companies are required to deduct tax before they make a repayment. Higher than expected personal injury claims have led Admiral Insurance to record a 30 percent share fall - the largest fall since it first floated in 2004. This one fall has cut the personal holding of the Chief Executive Henry Engelhardt by an incredible £135 million. In a statement released by Admiral it was stated that higher levels of personal injury claims had led to projected lower profits for the company for 2010 and 2011. This led to the huge share losses. Admiral covers around 3 million cars in the UK and is currently the worst performing stock in the Bloomberg Europe 500 insurance Index. It is also thought that the banning of referral fees will adversely affect the company as part of its profit has included these fees in the past. However Engelhardt has predicted that profits will be 10% higher than last year, just not at the level expected. The case of more than 1,000 ex-servicemen who were exposed to radiation during Britain's nuclear tests in the 1950's is set to enter the next stage of the battle for compensation this week. The case has been taken to the Supreme Court where it is being argued that the serviceman deserve the right to ask for compensation from the MOD. The MOD say that they owe the servicemen a debt of gratitude, but that they were not negligent. The lawyer for the men has said that the MOD's claim that these people were not exposed to radiation is “hopeless”. The MOD is also claiming that the because of the age of the claims they should be statute barred. This was accepted in the Court of Appeal last year because it could not be proved how the men got their illnesses. This is now being appealed in the Supreme Court. It is hoped that 10 lead cases will be able to go ahead. It has been revealed that pet owners are deliberately harming or even killing their pets so that they can claim compensation or insurance money. It has been estimated by the Association of British Insurers (ABI) that fake pet insurance claims worth nearly £2 million went ahead last year. Some pets have been injured in accidents to cover up conditions which were not covered by a policy or the pets were killed so that an early death payout can be made. It is also thought that some pets go missing or may never have existed in the first place. The ABI have also commented that vets may be in on the act to claim more for treatment. They could be using more expensive treatments or putting animals down without due cause. An author is claiming compensation after one of his books was slated by a reviewer on Amazon. The self published writer Chris McGrath who wrote The Attempted Murder of God: Hidden Science You Really Need To Know is seeking damages based on libel laws and damages from Amazon. In addition a claim has been made against the Richard Dawkins Foundation after they published a piece about his book on their website. While the content of the reviews have been removed by Amazon, the writer has said that it has been a very stressful time.  |
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