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Timing of PPI payment question
Suzy_P
Posts: 12
Forumite
Hi, I hope someone can help me.
In 2016/17 I was a 20% tax payer, with untaxed savings interest allowance of £1000. In 2017/18 I became a 40% payer, with untaxed savings interest allowance of £500, which I believe is relevant for these payouts.
In March 2017 I was offered a payout on mortgage PPI, which deducted £331 tax. I accepted in writing the following day, but the payment wasn't made until 12 April 2017. (Of the year in which I later breached the higher tax rate band). As I had savings and a bank account paying interest, I ended the year 2017/18 having earned interest almost to the £500 limit.
What I want to know is whether the tax is due as at the date the offer is made/accepted, or the date the payment is made? If the former, I can reclaim it, otherwise, I have lost it
Thank you for any advice.
In 2016/17 I was a 20% tax payer, with untaxed savings interest allowance of £1000. In 2017/18 I became a 40% payer, with untaxed savings interest allowance of £500, which I believe is relevant for these payouts.
In March 2017 I was offered a payout on mortgage PPI, which deducted £331 tax. I accepted in writing the following day, but the payment wasn't made until 12 April 2017. (Of the year in which I later breached the higher tax rate band). As I had savings and a bank account paying interest, I ended the year 2017/18 having earned interest almost to the £500 limit.
What I want to know is whether the tax is due as at the date the offer is made/accepted, or the date the payment is made? If the former, I can reclaim it, otherwise, I have lost it
Thank you for any advice.
0
Comments
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It's when payment is made - ie when you received the income.2
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Thanks zx81, I was afraid that was going to be the answer. Annoyed they took a month to process it though!
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