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PPI tax refund - oh dear!! help!!!

Hainsie
Hainsie Posts: 8 Forumite
Fifth Anniversary First Post
in Reclaim PPI & other insurance
So, I put in a claim for tax paid from PPI refunds using 2 R40s through HMRC over two different tax years. Claims totalled 8£00.

According to HMRC, not only am I not due the claim of £800, but I owe them £219!!!

Ever wish you never put a claim in?

How can I check this and get some help?:mad:
«1

Comments

  • McKneff
    McKneff Posts: 38,857 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Are you a tax payer.
    Or at least were you in the tax years you have claimed in.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
  • Hainsie
    Hainsie Posts: 8 Forumite
    Fifth Anniversary First Post
    Yes I was and am.
  • dunstonh
    dunstonh Posts: 121,167 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You are allowed to earn £1000 gross interest tax free. Anything over £1000 is taxed.

    Did you earn over £1000 interest (from all sources) in the tax year it was paid?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    Hainsie wrote: »
    According to HMRC, not only am I not due the claim of £800, but I owe them £219!!!

    How can I check this and get some help?:mad:
    If you actually owe them more tax, you'll have to pay it.
    Sounds like you have filled in the R40s incorrectly though.
  • Hainsie
    Hainsie Posts: 8 Forumite
    Fifth Anniversary First Post
    I have no savings, so none from that.

    I seems that as my PPi refunds were over that amount, I have been stung for any "income from investments" , ie monies received from my PPI payback over £1000.

    I wish had never bothered trying to claim the tax back at all.

    Looks like HMRC have done very nicely out of my PPI claims!
  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    Hainsie wrote: »

    I seems that as my PPi refunds were over that amount, I have been stung for any "income from investments" , ie monies received from my PPI payback over £1000.
    If you are liable for tax you have to pay it.
    Hainsie wrote: »
    I wish had never bothered trying to claim the tax back at all.
    Indeed.
    Claiming tax back , without checking your eligibility first, is often a recipe for paying even more tax.
    Unlucky.
  • Hainsie
    Hainsie Posts: 8 Forumite
    Fifth Anniversary First Post
    There is a lesson to be learnt there, be a tax expert before you try and claim tax back!
  • Nasqueron
    Nasqueron Posts: 11,287 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    You only pay tax on the interest element of the refund, are you sure you have declared this all properly?

    Sam Vimes' Boots Theory of Socioeconomic Unfairness: 

    People are rich because they spend less money. A poor man buys $10 boots that last a season or two before he's walking in wet shoes and has to buy another pair. A rich man buys $50 boots that are made better and give him 10 years of dry feet. The poor man has spent $100 over those 10 years and still has wet feet.

  • [Deleted User]
    [Deleted User] Posts: 26,612 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    Nasqueron wrote: »
    You only pay tax on the interest element of the refund, are you sure you have declared this all properly?
    I agree the form(s) are likely to have not been filled in correctly.
    Hainsie wrote: »
    be a tax expert before you try and claim tax back!
    No. Just make sure you claiming correctly.
    Plenty of assistance available on the HMRC website.
  • dunstonh
    dunstonh Posts: 121,167 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I wish had never bothered trying to claim the tax back at all.

    You are still much better off. You are only taxed on the interest element of the refund. Not the capital refund (the refund of premiums).

    I suspect you may have put the full refund to HMRC and not the interest element only.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
This discussion has been closed.
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