PPI Tax reclaim

Catweazel68

Can anyone please give some advise re tax back on a PPI claim

Basically I received approx £10k back from several PPI claims in Feb this year. Just over £1200 was taken off at source (tax from interest earnt)

Now after reading Martins article about claiming tax back on PPI payments, I decided to see how much I could claim back as I am a 20% tax payer. I filled out the R40 form online and worked out that I should get just over £1k in tax back. This is allowing for the £1k personal allowance. I have no other savings so this was the only interest that I earnt in that tax year

Now HMRC have sent me a letter saying that I am owed just under £200 in tax back. I have called them and they said that things are calculated a bit different when it comes to PPI. I find this strange because the example on Martins website makes sense to me and yet the HMRC lady couldn't quite manage to explain why PPI tax is worked out different. She is sending me a letter which she says will explain in more detail

Any advice or suggestions greatly appreciated

[Deleted User]

Catweazel68 wrote: »

, I decided to see how much I could claim back as I am a 20% tax payer. I filled out the R40 form online and worked out that I should get just over £1k in tax back. This is allowing for the £1k personal allowance.

Your personal allowance is not £1000 in actual tax!

You are simply allowed to earn £1000 tax free.

Hence your refund is £200.

Sorry to disappoint.

meer53

£1000 in interest you are allowed, minus 20% = £200

Catweazel68

Moneyineptitude wrote: »

Your personal allowance is not £1000 in actual tax!

You are simply allowed to earn £1000 tax free.

Hence your refund is £200.

Sorry to disappoint.

HMRC website
Personal Savings Allowance
You may also get up to £1,000 of interest tax-free depending on which Income Tax band you’re in. This is your Personal Savings Allowance.

[Deleted User]

Catweazel68 wrote: »

You may also get up to £1,000 of interest tax-free depending on which Income Tax band you’re in.

As I said above, it's not £1000 in actual tax.

You are simply allowed to earn £1000 free of tax.

I don't know how to put it more clearly and simply.

The £200 is therefore correct, just as it was two weeks ago.

Rainbows19

I have recently received money back on my PPI this was a joint claim and I have also received money back for my deceased husband. My question is can I claim back the tax for my husbands PPI tax?

BoGoF

Rainbows19 wrote: »

I have recently received money back on my PPI this was a joint claim and I have also received money back for my deceased husband. My question is can I claim back the tax for my husbands PPI tax?

No, there is no nil rate band for the estate to utilise.

Electra005

I know I will probably come across as stupid, but I am confused by Question 3 on the R40 Form to claim back tax paid on my PPI, I am a basic taxpayer and have no other savings.
The form from the bank says:-
Total refund of PPI premiums and associated interest paid to date £801.11
Statutory Interest £1556.60
Less income tax on statutory interest (20%) £311.32

The R40 Form at Question 3.1 says :-
Net interest paid by bank etc- after tax taken off

Question 3.2 says :-
Tax taken off

Question 3.3 says:-
Gross amount - the amount before tax taken off

Question 3.4 says :-
Untaxed interest not included in box 3.3

Please can anyone tell me which figures from my bank paperwork go where? I am just going around in circles and can`t get my head around it. Many thanks

BoGoF

3.2 = £311.32
3.3 = £1556.60
3.1 = 3.3 - 3.2

3.4 only applies if you had other untaxed interest from savings accounts/current accounts etc

Kevin_Blackaby

Just a question, is it possible to fill out the R40 form with out the pay out details?
Kev

[Deleted User]

Kevin_Blackaby wrote: »

Just a question, is it possible to fill out the R40 form with out the pay out details?

Of course not.
How else could any tax refund be calculated? HMRC will require full details of the payout, the tax paid and any other income you may have had in the relevant tax year.