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

savemoney

Badger197 said:

Had  some ppi back last year  filles out all the r40 forms in and sent back to the tax office took about 3 weeks to get a reply.  now i have to send all the ppi forms back with all the tax refunds on  has anyone else had too do this

Yes they asked me that too I sent them a copy of each ppi I had two in all

Gareth6802

Hi Martin, I have received a letter from Lloyds regarding a PPI refund l have been awarded £10,701 as refund with 8% compensatory interest amount of £5955.18 on which i have to pay £1191.04 tax. Both myself and my wife work full time I earn around £29000 ayear and my wife earns around £17500 a year. Would it be worth filling in the R40 form to claim back any of the tax?
I currently don't earn interest on any savings as i don't have any. 

Dazed_and_C0nfused

Wait until after you get your P60 in April but yes, you could expect to get about £198 of the tax refunded based on what you have posted.

Badger197

Dazed_and_C0nfused said:

Badger197 said:

Had  some ppi back last year  filles out all the r40 forms in and sent back to the tax office took about 3 weeks to get a reply.  now i have to send all the ppi forms back with all the tax refunds on  has anyone else had too do this

Yes.  I suspect you have made some mistakes filling in the R40.

What did you declare in relation to the "PPI" related element?

Hi i filled all the forms out as on the r40 ,i checked on the hmrc site with my total wages for that year etc total pay from all employments, before tax taken off was filled in total the ppi tax on the forms then sent of

nigandjules

If you are self employed and don't claim the tax back will eventually you receive a refund in due course?

Dazed_and_C0nfused

No.  You need to include the taxable interest in the appropriate section of your Self Assessment return.

If you don't do this HMRC may of course decide to investigate you for failing to include some taxable income but for the sake of completing an extra box on your tax return you can avoid that possibility and your SA302 calculation will incorporate any tax overpaid on the statutory interest/compensation.

RobinGossard

I received PPI refunds earlier in the year and used the R40 to claim the tax back, IV since received some more PPI refunds ,can I send another R40 to HMRC to claim this tax too in the same tax year?

RobinGossard

Or can I only send one R40 tax form in one tax year?

Dazed_and_C0nfused

RobinGossard said:

I received PPI refunds earlier in the year and used the R40 to claim the tax back, IV since received some more PPI refunds ,can I send another R40 to HMRC to claim this tax too in the same tax year?

Yes but you must ensure that your interest figures are the combined total.

For example
Statutory interest/compensation payment 1 = gross interest £300, tax deducted £60

Statutory interest/compensation payment 2 = gross interest £200, tax deducted £40

If you only declare the second payment you may well have to pay £20 back to HMRC.  The correct figures are £500 (gross interest) and £100 (tax).

Probably sensible to include covering letter making it clear what you have done.

lindagillon

Hi Martin, just wanted to thank you so much, I got a letter today saying M&S are paying me back for mis sold PPI £18,919.40 cheque in 4 weeks, I would have lost all that without your advice forum. I feel I have won the lottery, Bless you and stay safe.
Lindy