Taxed Again On Tax Rebate

phyllisgrant

Back in November I claimed the tax back on PPI payments I have received over the last few years. The amount was £1039.00.

I’ve just received a letter from them this morning telling me I owe £377.49 in unpaid tax on this money.

How can they repay me for tax paid and then ask for the tax to be paid on the amount they paid?

TIA

FiscalPickle

This will be tax on the interest element of the PPI repayment, so it is taxable income sadly

phyllisgrant

Why didn’t they take it off at source? Given me £600 odd instead of the £1000.00?

Dazed_and_confused

Tax is all about the detail and unless you can provide a bit more information it's all guesswork as to whether the £377 is correct or not.

Back in November I claimed the tax back on PPI payments I have received over the last few years. The amount was £1039.00

Which tax years?
What does the £1039 relate to, the tax deducted, the tax refund, the gross interest before tax??

I’ve just received a letter from them this morning telling me I owe £377.49 in unpaid tax on this money.

What is this letter? Does it have a number on it? SA302, P800, PA302, P2???

phyllisgrant

I could only claim for the last 3 tax years, 17, 18, & 19.

The £1039.00 relates to the tax that was deducted at source before I received the payment from the company for wrongly charged PPI. As Martin said, if I didn’t have to pay tax, I could claim the tax deducted, which is what I did.

By “a letter” I meant I had received written communication via, letter. Through the post.

Dazed_and_confused

So was the letter about 2017, 2018 or 2019 (I'm assuming you mean 2016:17, 2017:18 and 2018:19?). Or all three years?

Have you still got the calculations you would have been sent when the tax was originally refunded?

Do you mean you didn't have enough taxable income to need to pay tax in any of those three tax years?

phyllisgrant

That’s right, DAC. All that I earn is just below the tax threshold.

Dazed_and_confused

So have you got the original calculations from HMRC?

What exactly does this this letter you have just received say?

Some HMRC forms and letters have a number at the bottom such as P800. Does the letter you have received have anything like that? If so what is it.

If you want help from people on here it doesn't do any harm to be a bit more forthcoming.

p00hsticks

phyllisgrant wrote: »

That’s right, DAC. All that I earn is just below the tax threshold.

If what you earn is only just below the threshold, then maybe receipt of this interest has pushed you over the threshold and hence there is tax due on it ?

Dazed_and_confused

But the first £6,000 (each tax year) interest over the Personal Allowance would be taxed at 0%.

And she only got just over £5k taxed interest in total so unless she had a lot of untaxed bank and building society interest I don't think that's the problem.

phyllisgrant

Thanks to all your help, I’m beginning to understand what’s going on. I looked at the bottom of the letter and it says it’s a PA302.

Will HMRC let me pay this over the year?