Following the deadline for payment protection insurance claims, which passed last year, David Massey and Amy Lawton explain that tax problems can arise when compensation payments are made.
Key points
● Do not assume that the taxable element of a client’s PPI compensation payment will be trivial.
● Few individuals will have paid the correct tax.
● The payment received may not be the same as that shown in the documents.
● The time limit for repayment claims for 2016-17 is 5 April 2021
