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Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it - Page 4

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

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  • edited 28 April 2019 at 2:12PM
    EP456EP456 Forumite
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    Third Anniversary 10 Posts
    edited 28 April 2019 at 2:12PM
    Box 3 is where you put the various details of the interest earned (ie, the statutory interest on PPI and interest on other savings

    Is there a quick way to calculate “interest on other savings” or do I need to trawl through a year of bank account statements?

    The R40 form also states that in the case of joint accounts, only “enter your share of interest received”

    I am a basic rate tax payer and my husband is higher rate. Do I just split any interest 50/50?

    Thank you
  • Dazed_and_confusedDazed_and_confused Forumite
    6.5K posts
    Uniform Washer
    ✭✭✭✭
    Is there a quick way to calculate “interest on other savings” or do I need to trawl through a year of bank account statements?

    Your bank may have sent you an annual statement showing the interest.

    The R40 form also states that in the case of joint accounts, only “enter your share of interest received”

    I am a basic rate tax payer and my husband is higher rate. Do I just split any interest 50/50?

    Usually yes. Your tax rates are irrelevant for this.
  • [Deleted User][Deleted User]
    0 posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
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    LBirch wrote: »
    Hi Martin you responded to my query
    "Martin" hasn't replied to a forum post for years. :)
    Martin Lewis long since sold this site to Money Supermarket for £millions !
  • BaatjesBaatjes Forumite
    1 posts
    I submitted the R40 refund of tax form online on the 11th April and last week it advised processed and reply sent. I didn't receive anything so rung HMRC today and they advise that a cheque for £198.96 is in it's way to me. Thank you MSE for letting us know about this as I wouldn't have known to claim it.
  • Hi I successfully claimed back PPI for my late parents and of course had to pay tax. I actually spoke to HMRC at the time and they said this was correct even though both parties had passed. Do you think I can claim this tax back?
  • I have received a couple of ppi refunds but I don’t have the paperwork now so I don’t know how much the tax was. I only have the net figure I’ve found from old bank statements. Can I still complete the R40
  • xssc32xxssc32x Forumite
    53 posts
    Hi
    Hope someone can help regarding claiming tax back on a successful PPI claim back in 2016 via R40 form. The following successful claim is outlined below
    Total refund was £6423.75
    Gross interest at FOS rate £1920.25
    Less tax 20% £384.05
    Stay Interest at FOS rate £0
    Net Interest £1536.20
    Total offer £7959.95
    I am a basic tax payer at 20% and have hadn’t any interest on savings am I eligible to claim based on above info? Also what figures do I need to enter on the R40 form for the UK interest section?
    Any help appreciated.

    Cheer
    Si
  • Gennie_MountneyGennie_Mountney Forumite
    2 posts
    First Anniversary
    MoneySaving Newbie
    Hi Martin, I got a PPI payment last April from Santander for £4400. I have put in a claim recently for a tax reimbursement. The interest was £568 and i’ve Just received a cheque for £10.25 - does this sound right. They haven’t sent the breakdown yet. Thanks Gennie
  • Dazed_and_confusedDazed_and_confused Forumite
    6.5K posts
    Uniform Washer
    ✭✭✭✭
    Hi Martin, I got a PPI payment last April from Santander for £4400. I have put in a claim recently for a tax reimbursement. The interest was £568 and i’ve Just received a cheque for £10.25 - does this sound right. They haven’t sent the breakdown yet. Thanks Gennie

    As you haven't told us what your total taxable income was or even the tax year in question it is impossible to say. May well be right. Could be wrong. You need to look at the breakdown when it comes. Usually a calculation called a P800.
  • Dazed_and_confusedDazed_and_confused Forumite
    6.5K posts
    Uniform Washer
    ✭✭✭✭
    Hi
    Hope someone can help regarding claiming tax back on a successful PPI claim back in 2016 via R40 form. The following successful claim is outlined below
    Total refund was £6423.75
    Gross interest at FOS rate £1920.25
    Less tax 20% £384.05
    Stay Interest at FOS rate £0
    Net Interest £1536.20
    Total offer £7959.95
    I am a basic tax payer at 20% and have hadn’t any interest on savings am I eligible to claim based on above info? Also what figures do I need to enter on the R40 form for the UK interest section?
    Any help appreciated.

    Cheer
    Si

    The figures needed for the R40 are,

    Gross interest at FOS rate £1920.25
    Less tax 20% £384.05
    Net Interest £1536.20

    As you haven't said what tax year you received the interest in or what your other taxable income is its impossible to know what refund you may be due back.

    But as you are a basic rate payer then it could be something like this,

    2015:16
    It may be nothing but could equally be the full £384 if you didn't pay much basic rate tax i.e. the savings starter rate of tax (0% in 2015:16) is available to you.

    2016:17
    You are likely to be due best part of £200 back, courtesy of the savings nil rate of tax (aka Personal Savings Allowance) but could be due the full £384 back if you didn't pay much basic rate tax and can use the savings starter rate of tax (also 0% in 2016:17).

    This all assumes your tax affairs are otherwise upto date i.e. you don't want we any tax for other reasons, and you genuinely didn't have any other taxable savings interest, this is particularly relevant if your claim is for 2016:17.
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