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

Sunday_Morning

Thanks D&C . I've don't think I got any documentation from my Halifax one but it was pretty substantial and the PPI payments went back to 1997.  So am I right in thinking that it what they gave me as the statutory interest part of the settlement was, for example, £2k,  it would work out like this....(as a 40% taxpayer with £500 tax free savings)

£2k x 20% = £400 deducted as tax from what I was given
(£0.5k x 0% = 0 )  + £1.5k x 40% = £600 tax that I should have been liable for? 
So going to the taxman would actually result in me needing to pay £200 more?

Dazed_and_C0nfused

Looks correct, assuming you are already into the higher rate band with your other taxable income.

delphi2

Got cheque back for £345 thanks took 3weeks 

lorrainereeve

How do I claim my PPI TAX DUE FROM 2012 FROM LORRAINE

Dazed_and_C0nfused

lorrainereeve said:

How do I claim my PPI TAX DUE FROM 2012 FROM LORRAINE

You don't.

If you were due a refund you had to contact HMRC by 5 April 2017 (possibly 2016) so you are several years too late.

stevefenwick1

Hi I have been succesfull with several PPI claims but through a 3rd party who also deducted vat at 20 % can this also be claimed back? 

Dazed_and_C0nfused

stevefenwick1 said:

Hi I have been succesfull with several PPI claims but through a 3rd party who also deducted vat at 20 % can this also be claimed back? 

No, you paid the company for a service that VAT is payable on.

Ideally you would have bought your own stamp.

Al.e

Another big thank you to Martin and the MSE Team.  Following your articles I successfully claimed a PPI refund in 2019 for my husband.  Once again, entirely down to your article, I've now secured a tax refund of £1300 (my husband is a non tax payer).  Keep up the good work

JVRMac

I have been contacted by the PPI company I used to say that I may be owed tax back and did I want them to claim for me. I declined as said it wouldn't be worthwhile as think I only got £600. Reading Martin's email I'm wondering if I should make a claim myself, but reading through it, I just don't understand it. I'm a basic rate tax payer and not sure if I have the documents regarding tax paid, is it worthwhile pursuing?

Dazed_and_C0nfused

JVRMac said:

I have been contacted by the PPI company I used to say that I may be owed tax back and did I want them to claim for me. I declined as said it wouldn't be worthwhile as think I only got £600. Reading Martin's email I'm wondering if I should make a claim myself, but reading through it, I just don't understand it. I'm a basic rate tax payer and not sure if I have the documents regarding tax paid, is it worthwhile pursuing?

If you want any overpaid tax back then yes, if you're not bothered no.

If you got £600 then the statutory interest element (the bit that is taxable and has tax deducted) would presumably be a lot less than that so any tax refund would be  relatively small.

If you don't have the figures then I cannot see how you could make a claim.  Or provide the info to the claims company for them to put a stamp on your claim.