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

Dazed_and_C0nfused

Is it likely we'll receive the full tax amounts back? My husband is basic rate taxpayer and is not near the higher tax threshold and has no interest from savings at all as he has none.

Unless he had very low income (sub £17-18k) then he will get a maximum of £200 for each year (£1,000 of the interest taxed at 0% instead of the 20% tax already deducted).

Also, is there any way to claim the tax back on PPI pay-outs if you no longer have the paperwork with the figures?  Could you just write to tax office and ask them to investigate?  I earn under the basic income every year and so do not pay any tax but I also had some PPI payouts which I no longer have the paperwork for - is there any way to track these down and re-claim the tax?

You would have to get the details from the company that made the payout.  If it was before 6 April 2016 then you are too late.

Vix26

Thank you so much Martin, that really helps! Much appreciated! Stay safe and well!

gazglen71

Hi Martin, I had two large PPI payouts early this year and have recently found out I can possibly claim back the tax. I have been on the HMRC website and started filling out the form online however it asks how much tax I paid but unfortunately I don’t have any of the paperwork anymore showing how much I paid out. Can I still claim this and if so how?

dickibobboy

Morning all, 

Grandparents were contacted by the company that they went through to claim their PPI back regarding claiming tax back on said refund. 
They've sent over a form to be signed and i just wanted to check that everything is as it should be.

The first signature is for one of my grandparents to authorise the company to gain information regarding marriage tax allowance (one of them is a 'low' earner and one of them is a higher one although they are not married)

The second signature is for the other grandparent to authorise the company for any tax repayments from 2016 to 2020 to be assigned / addressed and sent to the company. 
I know they take a fee out etc.. but is this normally how the process works?

Thanks

Dazed_and_C0nfused

dickibobboy said:

Morning all, 

Grandparents were contacted by the company that they went through to claim their PPI back regarding claiming tax back on said refund. 
They've sent over a form to be signed and i just wanted to check that everything is as it should be.

The first signature is for one of my grandparents to authorise the company to gain information regarding marriage tax allowance (one of them is a 'low' earner and one of them is a higher one although they are not married)

The second signature is for the other grandparent to authorise the company for any tax repayments from 2016 to 2020 to be assigned / addressed and sent to the company. 
I know they take a fee out etc.. but is this normally how the process works?

Thanks

If they are not married then how could either one possibly claim Marriage Allowance?  Or are they going to try making a fraudulent claim?

That type of refund authorisation is often legally binding and means any tax refund due for any of those years, irrespective of when it comes to light, is payable to the company.  

Is this not something you could help them with for free?

Ll7322

I’m slightly confused - can anyone clarify 

I was paid back PPI in 19/20

The gross interest was just over 5k 

My salary was 12k 

Figures rounded but can anyone tell me if I’ll get all the tax paid back - so roughly 1.4 k or a smaller amount please? 

Dazed_and_C0nfused

There are a few key things you haven't told us but chances are you will get most if not all the tax back as you appear to be able to utilise (in this specific order)

1.  Some unused Personal Allowance (may not apply if you have applied for Marriage Allowance)

2.  The savings starter rate of tax (upto £5,000 interest taxed at 0%)

3.  The savings nil rate of tax (upto £1,000 interest taxed at 0%)

But it won't be £1.4k.

The gross interest was just over 5k 

So expect maybe £1,000

FOGGY1974

Hi. I got a payout from Lloyds, it was only just over £500, tax was taken off from what I can see. I have looked at the blog and the how to fill out the R30 form but I can not see where to put the PPI Information in, can anyone help please. I know it ain`t much tax I will claim back but anything is better than nothing.

Kind regards.
Darren

Dazed_and_C0nfused

FOGGY1974 said:

Hi. I got a payout from Lloyds, it was only just over £500, tax was taken off from what I can see. I have looked at the blog and the how to fill out the R30 form but I can not see where to put the PPI Information in, can anyone help please. I know it ain`t much tax I will claim back but anything is better than nothing.

Kind regards.
Darren

PPI refunds aren't taxable and don't have tax deducted and as such should not be reported to HMRC.

The statutory interest/compensation paid alongside the PPI refund is taxable and has tax deducted.  This is taxed interest - look for that section on the R40.

7096143

Hi Martin can I claim R40 Hmrc tax back on ppi if I was in an IVA which I completed in March 2020 ? I was entitled to ppi and this was paid into my Iva so didn’t receive anything but can I claim tax  back from Hmrc ? Thank you