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

edited 30 November -1 at 1:00AM in Martin's Blogs & Appearances & MoneySavingExpert in the News
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  • JVRMacJVRMac Forumite
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    Had a look and have found most of my documents, the totals are broken down into Gross interest, tax and net interest paid. I take it I would only be claiming back the tax, is that correct? We don't really have any savings so probably only earned about £5 in interest and that's being optimistic lol. Looks like my husband paid £200 tax, mine was £38 for one and the £600 payout has no mention of tax being paid in the paperwork just they have estimated how much due as no records to go on? Should I contact them and ask if any was paid? Thanks for the advice 😊
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    JVRMac said:
    Had a look and have found most of my documents, the totals are broken down into Gross interest, tax and net interest paid. I take it I would only be claiming back the tax, is that correct? We don't really have any savings so probably only earned about £5 in interest and that's being optimistic lol. Looks like my husband paid £200 tax, mine was £38 for one and the £600 payout has no mention of tax being paid in the paperwork just they have estimated how much due as no records to go on? Should I contact them and ask if any was paid? Thanks for the advice 😊

    You would be completing the R40 form with details of all of your taxable income and tax paid and HMRC will then calculate Amy refund due.

    It is one form per individual for each tax year you are claiming for.  So if all the tax was deducted in one tax year it would just be a form for you and a second one for your husband.

    Based on what you have posted it is likely you would get all £28 back and husband maybe £195 or so.  Assuming the tax was deducted after 5 April 2017.

    Personally I would just go with what information you have got now.
  • xafalcon666xafalcon666 Forumite
    2 Posts
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    MoneySaving Newbie
    Hi ,at the start of may 2021 i sent in a r40 by post for the tax paid out on a ppi payout  for 2017- 2018 tax year,in that year i had no income apart from this payout i didn't receive any benefits,or any oher residual income,i was living purely on my savings., the gross payout was £13k and i had to pay £1.5k in tax .Anyway after having no response as to my claim last week i phoned the tax office and after waiting an hour on hold i got a guy who basically didn't help at all, he couldn't even confirm receipt of the form, or explaiin anything elsebut told me all i could do is just wait?,it's now nearly three months since i sent in the application i think i should have had some sort of response,if there not going to refund me anything i can wear it, but the fact they couldn't verify receipt i find pretty annoying as if they havn't had it i can reapply but my time for doing so is running out!
  • Dazed_and_C0nfusedDazed_and_C0nfused Forumite
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    You have nearly a year to claim.

    You do realise that PPI refunds aren't taxable and don't have tax deducted.

    Only the statutory interest paid alongside the PPI refund is taxable and has tax deducted.

    Are you certain you completed the R40 with the correct details?
  • xafalcon666xafalcon666 Forumite
    2 Posts
    First Post
    MoneySaving Newbie
    I have 8 months to reclaim to be exact thankyou, yes i filled in the form correctly,and the tax was deducyed at source by lloyds bank as they were the ones who paid out on the ppi,!
  • CJ_HockCJ_Hock Forumite
    1 Post
    First Post
    MoneySaving Newbie
    Hi, if you are a higher tax earner, make sure you read all the details!
    I made a claim from 2017/18 as I had paid £660 tax on my PPI claims based on 20%. However I had slipped into the higher tax bracket (40%) and now rather than receiving my tax back, I now owe HMRC £460 as my PPI claim should have been taxed at the higher rate......  :'(
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