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Help with PPI tax and R40

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manda1205 Posts: 2,366 Forumite

28 March 2017 at 6:41PM in Cutting tax

I've just had a really unhelpful telephone call with Inland revenue. I think I must have got a new chap as he really had no idea.

After much googling and searching on here I'm still really confused as to how PPI refunds are classified. Basically I have just had 2 PPI claims settled. One for £600 and the other for £3000. My problem is I work part time and have earned less than £11000 this tax year, so don't pay income tax. However on both PPI claims they have deducted tax. What I want to know is do those payments class as income? This would then take me over the tax threshold and thus need to pay the tax, so no problem. If it doesn't, or if its just a proportion that counts as income, then I may still be under, so could I claim the tax back?
Another thing is what do I tell Tax credits when we finalise?

I couldn't believe how unhelpful the chap at HMRC was, he kept going off the line to ask someone else, then came back and said go online and fill out an R40.
Thanks in advance for any help.

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Help with PPI tax and R40

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