PPI success but higher rate tax payer

Hubby has been successful in getting a PPI refund from RBS with 20% tax already deducted off the offer. He's a higher rate tax payer. Do we need to fill in a self assessment form to pay them another 20% of the interest?

Comments

  • Contact HMRC
  • Based on info provided probably no need for self assessment and unlikely to be 20% extra tax due on it all.

    Depending on what other interest he has upto £500 could be taxed at 0%.

    Gets more complicated if child benefit is involved or total income is over £100k
  • hilbil21
    hilbil21 Posts: 57
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    He does fill in a self assessment due to child benefit.
  • As he is going to be completing a tax return there is little point in contacting HMRC.

    All the PPI interest is taxable but £500 (of the total taxable interest received in the year) will be taxed at 0%, otherwise known as the Personal Savings Allowance rate band.

    But, all the interest, even the bit taxed at 0%, is taxable income so he will have a higher child benefit charge for that year as a result.
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