PPI Tax - How to make payment to HMRC

GillianY1

Just wanted to clarify how to make tax payment on the 8% interest element of the PPI reclaim my mother in law has received.

The interest elent is £600 therefore she will have to pay £120 to HMRC as she is a low rate tax payer.

I thought she could pay it as a lump sum however when she called them they said they would ahve to adjust her tax code.

Can anyone clarify if this is the only way they can do it and how long her code would be adjusted? Is it adjusted for 12 months therefore in theory the difference should be £10 extra paid in tax each month? After the 12 month period do they readjust the tax code back to what it previously was?

Thanks in advance!

dilus

GillianY1 wrote: »

Just wanted to clarify how to make tax payment on the 8% interest element of the PPI reclaim my mother in law has received.

The interest elent is £600 therefore she will have to pay £120 to HMRC as she is a low rate tax payer.

I thought she could pay it as a lump sum however when she called them they said they would ahve to adjust her tax code.

Can anyone clarify if this is the only way they can do it and how long her code would be adjusted? Is it adjusted for 12 months therefore in theory the difference should be £10 extra paid in tax each month? After the 12 month period do they readjust the tax code back to what it previously was?

Thanks in advance!

I don't think the staff at HMRC know how to do it When I contacted them they said they couldn't alter my tax code and sent me a paying slip for the full amount. I returned it with a cheque It all depends on who answers the phone I think

amersall

GillianY1 wrote: »

Just wanted to clarify how to make tax payment on the 8% interest element of the PPI reclaim my mother in law has received.

The interest elent is £600 therefore she will have to pay £120 to HMRC as she is a low rate tax payer.

I thought she could pay it as a lump sum however when she called them they said they would ahve to adjust her tax code.

Can anyone clarify if this is the only way they can do it and how long her code would be adjusted? Is it adjusted for 12 months therefore in theory the difference should be £10 extra paid in tax each month? After the 12 month period do they readjust the tax code back to what it previously was?

Thanks in advance!

As dilus said "depends who answers the phone".
Ring them back and see who you get next time.

They will adjust the code for the next tax year,when the surplus has been repaid,the code goes back,make sure they do this!.

GillianY1

amersall wrote: »

As dilus said "depends who answers the phone".
Ring them back and see who you get next time.

They will adjust the code for the next tax year,when the surplus has been repaid,the code goes back,make sure they do this!.

Thanks, that was what I was a bit worried about if they start messing around with her tax code and don't put it back after the year. Would be better for her if they just accepted it as a one off payment. Will tell her to call them back.