Ulster Bank PPi success

Loopslou72

I banked with UB for over 20 years and probably had around 4 car loans within that time, today I received a cheque for £11824 for mis-sold PPi.

My bank account won’t look that healthy for long however, the funds will be used to clear the last of the debt that my violent ex husband left me with and never paid a penny towards but hey, I’ll be debt free 🤗

Dazed_and_confused

And you'll probably be able to get a refund of some of the tax deducted from the interest element of the payout

Loopslou72

Really? They did deduct tax as have others that I’ve received (smaller amounts). Is this something that will happen via the PAYE system (I work full time) or would I need to do something to generate the possible refund?

[Deleted User]

Loopslou72 wrote: »

would I need to do something to generate the possible refund?

You need to fill in form R40 detailing the interest element only of your redress amount. You are allowed £1000 of interest income tax free, so you should get a refund of some of the tax you paid.

Dazed_and_confused

And if you earn less than £17,500 you may able to benefit from the savings starter rate of tax where upto £5,000 of interest is taxed at 0%.

This needs to be exhausted before the savings nil rate (up to £1,000 taxed at 0%) applies.