PPI and Self Assessment Tax forms

Seobaina

Hi

Apologies if this is not the right place to put this but I'm doing my online self-assessment tax forms and I'm not sure where I am supposed to declare a ppi payout. I know I have to declare it as it is taxable but can anyone give me advice as to where? Would it be under 'other UK income'?

Thank you

antrobus

Seobaina wrote: »

Hi

Apologies if this is not the right place to put this but I'm doing my online self-assessment tax forms and I'm not sure where I am supposed to declare a ppi payout. I know I have to declare it as it is taxable but can anyone give me advice as to where? Would it be under 'other UK income'?

Thank you

In general, your PPI payout will consist of two things (1) a refund of the PPI premiums paid and (2) compensatory interest less tax at 20%. The refund of premiums is tax-free, the interest bit gets included with all your other UK interest taxed at source.;)

Seobaina

Sorry, I'm bring thick but...so do I not declare it on my self-assessment forms? I thought I had to?

dunstonh

You put the interest element of the redress payment on the tax return (in the area where you total up interest paid)

Seobaina

Thank you

antrobus

fosnightmare wrote: »

Hi,

After 2 years, I finally got things sorted out with my ppi.
The interest amount at 8% is £2800 and the bank say that they've taken off 20% tax on the £2800. They took off £560.
So I've already paid tax on the interest but do I still need to include it on my self assessment form (I do a yearly tax return anyway)?
If I do, what amount do I document, the £2800 or £2240?

Hope someone can help with this

Thank you.

You document the £2240.

It goes in the box for Taxed UK interest etc.– the net amount after tax has been taken off together with any other taxed interest you may have received.