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Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it

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Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it

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MSE_EeshaMSE_Eesha MSE Staff
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This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.




Please click 'post reply' to discuss below.
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Replies

  • edited 8 April 2019 at 7:00PM
    incesticdeincesticde Forumite
    456 posts
    edited 8 April 2019 at 7:00PM
    Thought I’d get ahead on claiming this before this guide gets included in the mse mail and the tax office gets bombarded!

    Noting the arguments used in the guide I’m surprised that package bank account claims were also not mentioned, coop gave me 8% interest on my package bank account claim and took tax off at my rate.

    Is there a reason for this I’ve missed or is it just an oversight?

    As always Martin, thank you for the cash that will be making its way to me!

    :money:

    Martin Lewis: Keeping me in Apple products since 2006!
    "I don't want to sound cold and un-caring, but I am those things so that's the way it comes out" - Bill Hicks
  • TC65TC65 Forumite
    1 posts
    Hi Martin. My wife and I received a PPI payout on which we were deducted 20% tax, around £800. HMRC have initially refused a refund even though we have not breached the £1000 threshold. They added a payout would only be around £200. Not convinced they are right but interested in your view.
  • edited 9 April 2019 at 10:24PM
    Dazed_and_confusedDazed_and_confused Forumite
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    edited 9 April 2019 at 10:24PM
    There is no £1,000 threshold.

    You can be a basic rate taxpayer and have £5,999 interest taxed at 0%.

    Or it might be £1,000 taxed at 0%.

    The £200 figure is taking a very simplistic view. That you are able to have exactly £1,000 of the interest taxed at 0%. And all your taxable interest in the year is from a PPI payout. In that situation you have paid £200 on £1,000 of interest taxed at 0% so have overpaid £200 in tax.

    But in reality that is unlikely to happen to someone reading this website as they probably have other savings interest which hasn't been taxed which would have to be taken into account when calculating any refund due.

    If you are due a refund then HMRC will pay it to you but what the guide doesn't mention is that people filing Self Assessment returns cannot get a refund as described. They will already have declared the interest on their Self Assessment return and any tax overpaid will have formed part of their Self Assessment calculation.

    If you provide some more information about your own circumstances it might be possible to understand what the problem is
  • RuthyssRuthyss Forumite
    1 posts
    Hi ,what if a company reclaimed your ppi’s and you can’t remember which year ,can they reclaim the tax for you ?
    I think I was paid out in 2016 but can’t be sure ,should I contact them about the tax owed ?
  • [Deleted User][Deleted User]
    0 posts
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    Ruthyss wrote: »
    Hi ,what if a company reclaimed your ppi’s and you can’t remember which year ,can they reclaim the tax for you ?
    I'm certain if you approach them they'll try... for their usual fee! :eek:
  • Mel271Mel271 Forumite
    1 posts
    Does this apply to Plevin?
  • In 2018, I was luckily enough to receive a PPI refund, of this, I paid 20% tax on the Statutory Compensation element, this was £511.

    £2555 X 20% = £511

    Taking into account the Personal Savings Allowance. could anyone one advise on the Tax I should of paid and a simply calculation on how to work it out.

    many thanks
  • Hi Martin as I got my ppi paid in Feb 2014 does this mean I can’t clsim back the tax?

    Thanks Lisa
  • Hello, I started the process of online applying for TAX PPI reclaim, its looks like it's only going back as far as 2015 ? is that correct?
    My PPI was paid out well before 2014 for years 1996 to 2000 roughly.
    Cam
  • Scubachick7510Scubachick7510 Forumite
    2 posts
    First Anniversary First Post
    MoneySaving Newbie
    Hi Martin, I am a little confused as I had a PPI claim payout from Barclays in August 2016, The calculation states refund of PPI £468.64, a refund of interest charged on premiums paid £183.91 and statutory compensation interest. £963.84... it then includes a deduction from statutory compensation interest for income tax 20% £192.76, does this mean I can claim the deduction part back?
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