PPI repayment and tax

lorryw · 9 March 2018 at 3:44PM

I have just received a letter from Lloyds to tell me I will be receiving a refund of just over £2000 for missold PPI .The letter detailing the amount is complicated and includes numerous abbreviations etc.
After reading the letter several times I notice that £300 has been deducted because " the gross interest will count towards your personal savings allowance' Is that usual?

Nearlyold · 9 March 2018 at 7:30PM

Yes its usual.

societys_child · 9 March 2018 at 7:35PM

lorryw wrote: »

I have just received a letter from Lloyds to tell me I will be receiving a refund of just over £2000 for missold PPI .The letter detailing the amount is complicated and includes numerous abbreviations etc.
After reading the letter several times I notice that £300 has been deducted because " the gross interest will count towards your personal savings allowance' Is that usual?

They should deduct 20% for the tax man. If you're a higher rate tax payer, you should contact HMRC because you owe more, but if you're a none tax payer, you can claim it back.

amersall · 9 March 2018 at 8:13PM

https://www.gov.uk/government/publications/income-tax-claim-for-repayment-of-tax-deducted-from-savings-and-investments-r40

lorryw · 10 March 2018 at 9:42AM

Thank you for the information.

PPI repayment and tax

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