Tax on PPI & CPP

gk2020

First Direct have agreed to refund me on PPI & CPP they have added on 8% gross interest and then deducted 20% for tax. They said they are obliged to do this.
Is it correct that they are deducting the 20% tax? I am self employed now but and as I was employed at the time surely i have paid tax on this money aleady?
Please can anyone advise - thank you

societys_child

They tax only the the interest (you haven't previously paid tax on this)

A higher tax payer would be obliged to pay more directly to HMRC, but if you don't earn enough to pay tax, you can claim it back, from your tax man.

Mersey_2

Yes, just include any rebate requests in your self-assessment return online.


Or write to HMRC if you don't want to wait that long.


They're quite used to it now due to the number of bank packaged account reclaims, PPI and so on.


In fact they were so efficient that I received my tax reclaim via bACS within 10 days of my self-assessment return.

gk2020

thank you so much :j

sun73

I think you can use form R40 to apply for a refund of taxed paid on PPI interest, if you don't want to wait for the next self assessment.