PPi tax reclaim resulted in big tax bill

Docwit

I got a big PPi payout plus £9999 interest as a 20% tax payer. I got taxed £1900 taken off so claimed for the tax back afer reading Martin€‘S money. I got a shock on Friday as instead of an expected cheque for £1900 I got a tax bill for an additional £1500 to be paid within 2 weeks. I am gutted. Apparently the interest took me over the tax threshold. I had no Idea. Is there anything I can do please.

[Deleted User]

Docwit wrote: »

Is there anything I can do please.

Pay the additional tax from your "big payout" before you spend it?

antrobus

Docwit wrote: »

I got a big PPi payout plus £9999 interest as a 20% tax payer. I got taxed £1900 taken off so claimed for the tax back afer reading Martin€‘S money. I got a shock on Friday as instead of an expected cheque for £1900 I got a tax bill for an additional £1500 to be paid within 2 weeks. I am gutted. Apparently the interest took me over the tax threshold. I had no Idea. Is there anything I can do please.

As a '20% tax payer', you would not have been due a refund anyway.

The only thing you can do is pay the £1,500.

BoGoF

antrobus wrote: »

As a '20% tax payer', you would not have been due a refund anyway.

The only thing you can do is pay the £1,500.

Yes they would if the interest kept them in the 20% rate band they would have still been entitled to the £1000 nil rate savings band. So around £200 if a basic rate taxpayer including interest.

I assume the additional £9999 income tipped them into the higher rate bracket.

BoGoF

And o/p has confirmed it took them into 40% tax bracket on their other thread.

It's income, it's taxable (or some of it at) at 40%, you only paid 20% so you need to pay what's owing. There is nothing else you can do.