Reclaim of PPI tax content

B0$$

I have just had 3 successful PPI reclaims. As a low rate tax payer on each occasion tax was deducted at 20% on the interest as expected. Claim 1 was paid to me on 30-3-16 with a tax element of £59.21. Claim 2 was paid to me on 10-4-16 with a tax element of £175.08. Claim 3 was paid to me on 05-5-16 with a tax element of £254.88.
Had this been savings interest although I think it is still equivelant I would be contacting HMRC for a 2016 – 2017 tax code query form to alter my code accordingly.
Would that be the best way to do it and are HMRC likely to just ignore the £59.21 as it was paid to me prior to the new rules which commenced on 6th April 2016.

Nasqueron

You have to pay tax on interest for anything prior to the new rules taking effect, lower rate tax payers are not exempt, you only claim it back if you are under the earnings threshold so should be paying no tax. You don't need to get HMRC to change your tax code for interest on a PPI refund

Lisa0812

I am a none tax payer, and have just received £566 back into my account from HMRC. It took under 2 weeks -- very happy

Nasqueron

Lisa0812 wrote: »

I am a none tax payer, and have just received £566 back into my account from HMRC. It took under 2 weeks -- very happy

Which is great and HMRC did their job correctly but the OP clearly stated they pay the lower rate of tax so have to pay tax on interest for anything before April