Reclaiming PPI 20% tax back from interest...

djkav

Hi,

Has anyone tried to reclaim the 20% tax from the 8% interest of a PPI claim.

I have downloaded the tax form R40 that is used to reclaim tax back for this purpose. I really don't have a clue as to what values to fill in. I know i'm below the tax threshold for 2013-2014 tax year.

My claim calculation is broken down into this:

A - Claim Value £xxxx
B - 8% simple interest PA £xxxx
C - Income tax deduction £xxxx

Your claim total = A + B - C = £xxxx

I just don't know how to apply that to the R40 tax form.
R40 Download

antrobus

djkav wrote: »

....
My claim calculation is broken down into this:

A - Claim Value £xxxx
B - 8% simple interest PA £xxxx
C - Income tax deduction £xxxx

Your claim total = A + B - C = £xxxx

I just don't know how to apply that to the R40 tax form.
R40 Download

As far as I can see;

Amount B, the total of the '8% simple interest' goes in box 3.3 - Gross amount – the amount before tax taken off.

Amount C, 'Income tax deduction', goes in box 3.2 - Tax taken off

The total of B minus C, then needs to go in box 3.1 - Net interest paid by banks, building societies etc and purchased life annuities – after tax taken off

Of course, if you have received any other taxed interest in the tax year in question you will have to include those amounts in boxes 3.1 to 3.3 as well.

djkav

So if I earned £8k for tax year 2013/14. Would Amount B add to my earned £8k to make me tax liable, if it exceeded my personal threshold?

[Deleted User]

djkav wrote: »

So if I earned £8k for tax year 2013/14. Would Amount B add to my earned £8k to make me tax liable, if it exceeded my personal threshold?

It would indeed be added to your earnings for the year and be subject to tax if the threshold is breached.

anamenottaken

djkav wrote: »

So if I earned £8k for tax year 2013/14. Would Amount B add to my earned £8k to make me tax liable, if it exceeded my personal threshold?

If the Amount B plus your other income came to more than your personal allowance for 2013/14 then the excess amount would be subject to tax. However that would still be less than you have paid in tax, so there should be a refund due to you.

[Deleted User]

Don't expect any quick refund from HMRC.