Reclaim tax on PPI - now I owe more tax?

vcrawford

I followed a recent article by ML about reclaiming tax on PPI. I completed the forms but instead I’d having a refund, I now actually owe money to HMRC! 

The issue seems to come from the details I read in the article which said that earners up to around £50,000 had a £1,000 personal savings allowance. My total earnings for the tax year in question (2016-17) including benefit in kind is £45,000 but HMRC are saying the personal savings allowance should only be £500 and not £1,000. Could somebody please confirm?

Thanks in advance 


Vicki 

vcrawford

This was the original blog I read 
https://blog.moneysavingexpert.com/2019/04/martin-lewis--had-a-ppi-payout---if-so-you-can-reclaim-the-tax-o/

Dazed_and_C0nfused

The £50,000 figure is for the current tax year, 2019:20.

The equivalent figure in 2016:17 was only £43,000.

There is no "allowance" for interest.  You should see £500 of the interest taxed at 0%.  Is that what your calculation shows?

vcrawford

Dazed_and_C0nfused said:

You should see £500 of the interest taxed at 0%.  Is that what your calculation shows?

Yes that is correct. Thanks for your reply. The info in ML blog should be amended as it’s very misleading. If I owe the tax then I owe the tax, that’s fine, but I was expecting a small refund not to have to pay tax back now. 

Dazed_and_C0nfused

The rest of the country thanks you