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

Dazed_and_confused

You would need to ask the company who made the payout.

Whether they will supply the information after this length of time is another matter.

If it was in the 2014:15 tax year then it doesn't matter as you are too late to claim any tax refund due for that year.

ChaKsmith

Hi

Further to looking through these posts and the original article can someone please confirm if my understanding is correct regarding claiming tax back on a successful PPI claim

The claim was successfully completed in December 2019.
It was a joint claim for myself and my wife

Gross interest at FOS rate £5,185.33
Less tax 20% £1,037.07
Net Interest £4,148.26

We are both basic rate tax payers at 20% and have not received any interest on savings for the year in question. (2019)

Assuming we can successfully complete the R40 form we should be able to split the interest and claim the tax paid on our £1000 tax free saving allowance. This would give us a net return of approx. £400 (£200 each). :cool:

Is this correct or am I not understanding the whole concept.

Regards

C

Dazed_and_confused

Assuming we can successfully complete the R40 form we should be able to split the interest and claim the tax paid on our £1000 tax free saving allowance. This would give us a net return of approx. £400 (£200 each).

Is this correct or am I not understanding the whole concept.

You are understanding far better than most

If the interest was paid in joint names then you each would need to complete an R40. Assuming you have no reason to need to file a Self Assessment return.

The amount of the refund would depend on how much basic rate tax you are each paying. It may be close to £200 (likely a pound or two less as you generally owe HMRC a pound or two each year which they usually ignore until you need a calculation sending out).

But if either persons taxable income from wages/pension income was less than £17,500 then that person could be due up to the full £518.50 (half share) back.

If that is the case Google savings starter rate of tax. Basically the lower the wages/pension under £17,500 the bigger the refund would be.

angel_face_251

Hi there had a brief look over the R60 a lot of details I can’t provide as I do not have the documentation of the two different amounts of PPI I received plus my name has since changed how can I go about claiming this back without details such as the amount I received and from whom is there a place you can go to get further info?

ruthiesteve

I tried to claim the tax back, sent in supporting evidence from copies of the letters from the PPI payouts :(detailing the tax paid, I was told I owed them money as I hadn't been taxed enough and why did I think I could not pay tax like everyone else. I have had no savings so had not used any of my allowance. Thinking I may ring and try again, do you think this would be a good idea?

Dazed_and_confused

angel_face_251 wrote: »

Hi there had a brief look over the R60 a lot of details I can’t provide as I do not have the documentation of the two different amounts of PPI I received plus my name has since changed how can I go about claiming this back without details such as the amount I received and from whom is there a place you can go to get further info?

You can't. You will have to ask the company that made the payout for the details.

Not sure what your name changing has got to do with this.

Dazed_and_confused

ruthiesteve wrote: »

I tried to claim the tax back, sent in supporting evidence from copies of the letters from the PPI payouts :(detailing the tax paid, I was told I owed them money as I hadn't been taxed enough and why did I think I could not pay tax like everyone else. I have had no savings so had not used any of my allowance. Thinking I may ring and try again, do you think this would be a good idea?

Before phoning them you might want to share a bit more information so you ask some relevant questions.

Were you a higher rate payer in the tax year you claimed for?

Did you complete an R40? If so did you declare the whole PPI refund as taxable income or just the statutory interest?

ChaKsmith

thank you very much for your sage advise :beer:

CaronR

Hi, I wonder if anyone can advise.  Had a PPI payout in 2018 for £7996 from Lloyds TSB. This was minus tax.  I have rang the tax office about claiming the tax back but they say they need to see the original letter stating the amount from Lloyd's TSB which I dont have. I have also rang Lloyds TSB but they state they dont keep correspondence on file over 6 months old.  I've tried filling in the online tax form but it wont let me go further until I type in the amount of tax I am claiming. How can I found out the amount of tax?

Dazed_and_C0nfused

CaronR said:

Hi, I wonder if anyone can advise.  Had a PPI payout in 2018 for £7996 from Lloyds TSB. This was minus tax.  I have rang the tax office about claiming the tax back but they say they need to see the original letter stating the amount from Lloyd's TSB which I dont have. I have also rang Lloyds TSB but they state they dont keep correspondence on file over 6 months old.  I've tried filling in the online tax form but it wont let me go further until I type in the amount of tax I am claiming. How can I found out the amount of tax?

Tax isn't deducted from PPI refunds, it's only the statutory interest/compensation element that is taxed.  Do you have any idea how much the statutory interest/compensation element was?

What do you mean by "2018"???  The 2017:18 tax year or the 2018:19 tax year?

Roughly how much other interest did you receive in the tax year in question?  From normal bank or building society accounts etc (not ISA's)?  This is very important.

How much were you earning that tax year i.e. the taxable pay from your P60 plus company benefits (if you had any).

Did you file a Self Assessment return for the tax year in question.