PPI and Form R40
Shaun_of_the_Dead
Forumite 483 Posts
Following Martins programme on Monday I am attempting to claim back the tax on an hsbc ppi claim.
Their letter states:
If I understand it correctly then:
3) Is the amount of interest they've awarded me and is the gross figure.
4) is the amount of tax I paid.
A simple deduction of 4 from 3 give the net figure.
Have I understood this correctly?
Their letter states:
The amount of redress you are due is based on the following elements:
1) A refund of the CRP premiums you have paid from 28/08/1997 to 09/10/2007 For any period that our electronic records have not been available, the refund is based on an average credit card balance calculation.
2)Plus any interest that has been debited to your credit card in respect of these premiums.
3)Plus simple interest at 8% on any funds you would have had at your disposal had you not taken out the CRP. This covers any periods where your card account would have been in credit if the premiums had not been debited, as well as interest applied from your last
statement date to bring the redress figure up to the current time.
4)Less Basic rate of Income Tax. HM Revenue and Customs (HMRC) legislation obliges us to deduct income tax at the basic rate from any interest amount we pay. Interest has, therefore, been paid after the deduction of basic rate tax at 20%. If your client is a higher
rate taxpayer they may have to pay additional tax. If your client is a non taxpayer they may be able to claim this back by completing a form R40 (or form R43 if living overseas) and sending it to HMRC. The interest paid will count towards your clients Personal Savings Allowance. If your client has any tax queries please advise them to contact their local tax office.
If I understand it correctly then:
3) Is the amount of interest they've awarded me and is the gross figure.
4) is the amount of tax I paid.
A simple deduction of 4 from 3 give the net figure.
Have I understood this correctly?
0
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Replies
But if 4 is 20% of 3 then you may be right.
1) £1,878.49
2) £6,930.99
3) £2,245.83
4) £449.16
Presumably you are not required (for some other reason) to complete a Self Assessment return.
No need to complete a self assessment.
So 3 is the gross figure and 4 is the tax paid?
There was 3 ppi in the same tax year and told to do 3 ppi r40. Husband is currently a none tax payer and will not hit the threshold for 19/20. Total tax paid on ppi 1900. Will not hit the 1000 limit this year on savings interest as finally using isa allowance.
What does this mean?
What forms? Self Assessment return? R40?
Whoever told you that is wrong. An R40 is just an alternative to a Self Assessment tax return.
He probably isn't entitled to use the £1,000 PSA. Simply because he doesn't need to. You can only use that if you have used all your Personal Allowance and savings starter rate of tax (upto £5,000 interest taxed at 0%).
1 he submitted the form r40 and was told that he had to conclude his self assessment return for 18/19 before he could claim the ppi refund.
2 completed his self assessment and all finalised. Underpayment of around £65. Deferred to 19/20
3 confirmed with hmrc he will not be earning from self employment as not well. They have closed down the SA claim and he has returned to paye.
4 in 19/20 he received 3 ppi refund and told to send them on seperate r40 with the letter from the provider confirming figures.
Posted the r40’s looked online to be actioned by 28/1.
No post rung to be told the r40 are being returned but could not say why.
We were also told that the amounts would be taken into account including interest on saving. Did not know that it did not apply if you don’t pay tax. Hmrc implied it was taxable income. And therefore may have to wait until after April.
Forms still not arrived after one week so will update once received