Client received £2000 PPI interest which is net of £500 tax. PPI claims handler has deducted commission of £480 from the net £2000 and paid the balance of £1520 to my client. What goes on the tax return? As far as the bank is concerned it paid out £2500 net of £500 tax and I guess this is what the bank would have reported to HMRC. I phoned HMRC ADL and they said I should record the actual payment received ie £1520 and that this should be recorded in the net interest which means it will gross up as £1900 gross and £380 tax. Is this correct? I'm not sure because it won't agree with the figures HMRC have received from the bank. Has anyone come across this? What is correct?