Completing r40 difficulties

Karenjen

Hello having real difficulties completing r40 for taxe rebate for ppi . The tax is on statutory compensation not interest which is what form is asking about ...any help I would be grateful.

Dazed_and_confused

Tax is not deducted from PPI refunds, it's only deducted from the interest element.

What exactly is the problem, your post isn't very clear as to what the difficulty is.

foxtrotoscar_2

Check the OP's history...BBC1 tonight at 5.15pm

Karenjen

Sorry 😐 so there is no tax on the interest only on the statutory compensation of £2622 which £524 has been deducted for tax. Can I claim it back?

[Deleted User]

Karenjen wrote: »

Sorry �� so there is no tax on the interest only on the statutory compensation of £2622 which £524 has been deducted for tax. Can I claim it back?

The tax is on the interest only, just as it says at post #2.

If you fill in the tax claim form and include the entirety of your refund rather than just the taxable interest you will likely end up with a bill for further tax!

Are you actually entitled to any tax back, though? Are you a taxpayer?

Dazed_and_confused

Maybe you need to post the full breakdown/explanation of your PPI payout?

Karenjen

Refund of ppi payment £1256.84
Refund if interest charged on ppi premium £876.13
Statutory compensation £2622.21
Tax deduction from compensation £534.44

Can I get any tax back? I am sooo confused 🤷🏾!♀️

Karenjen

Can anyone advise please?

Dazed_and_confused

I think that is just the PPI referring to the interest in s slightly different way. You should check with the company that made the payment but I suspect it is actually a statutory interest payment (the 8% they have to pay).

The amount of refund, or extra tax you will have to pay, depended on your other taxable income.

How much will you be paid this tax year (your expected P60 pay figure)?

Roughly what other interest will you receive in this tax year from banks or building societies?

Chances are you could be due upto £200 back but that all depends on the answers to those two questions.