Reclaiming tax paid on PPI pay out

paul62302014

"As basic-rate taxpayers should've been paying 20% tax, and that's what was automatically deducted, there's nothing to claim back" - Does this statement mean basic rate taxpayers should NOT apply for reclaiming tax

Nasqueron

If you earn less than £1000 of interest in the tax year as a a basic rate taxpayer you can submit a claim at the end of the tax year using form R40 for the refund of the taxed interest.

Dazed_and_confused

A lot depends on how much basic rate tax you were paying, what tax year the PPI interest was paid in and what other interest you received in that tax year.

You could have £2,000 interest which would all be taxable at 0%.

Or £2,000 might be taxed some at 0% and some at 20%.

Or it might all be taxable at 20%.

Not enough detail to know if it is worth you claiming but the quote you have have referred is very misleading as a lot of basic rate taxpayers are likely to be eligible for a repayment.