PPI success but higher rate tax payer
hilbil21
Posts: 57
Forumite
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?
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Comments
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Contact HMRC0
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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 £100k0 -
He does fill in a self assessment due to child benefit.0
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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.0
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