Claiming tax back on a PPI refund

binnie

Hi Sorry was a quick rush writing the post, I did mean the pension was Hargreaves Lansdown

We filled the form in online with the help of the Inland revenue, but the operator was confused herself as I mentioned the fees for Gladstone Brookes were over £500 and she wanted to know what we had been paid into the bank. I told her the amount and said Gladstone Brokes paid it in one day then a few days later took out their fees. She said to just enclose all the paperwork we have and leave some things blank if we didn't know how to fill it in. I don't think she knew herself

binnie

Dazed_and_confused wrote: »

As he's a basic rate taxpayer the PPI interest will all end up being taxed. The good news is that tax rate is 0% so he should get an additional refund of £240.80

When you say this, do you mean he will get two lots of £240.80 as you say an additonal?

Dazed_and_confused

No, you yourself said he had already received a tax refund,

HMRC refunded him £415.60

He is now going to be due an additional £240.80.

I have no idea why you mentioned the fees? They are not income and you cannot claim tax relief on them. He had received taxable interest of £1204 and will be taxed on this, fortunately at the 0% tax rate.

You cannot claim he should only be taxed on £1,204 less £565 fee.

This might delay him getting any refund as HMRC may well want to clarify this with him before re-calculating his tax for the year. It won't stop getting the refund, just might cause a delay.

binnie

I didn't write that on the forms though about the fees, it's just the HMRC operator asked me what we got out of it as in the breakdown of it all.
She didn't even know herself about how to fill the forms in correctly so said to enclose all the figures as photo copy