PPI Tax reclaim

Anita19267

Its the amount shown on the paperwork under "UK witholding tax" or similar wording

Lond2009

Dazed_and_C0nfused said:

A basic rate payer can have up to £5,999 interest which will be taxed at 0%.

The more basic rate tax you pay the lower the £5,999 figure becomes until it drops to £1,000.

What are you finding complicated about the R40?  You do know you only complete the sections which apply to you.

Thanks. Yes I know.  Another question I have is i received the PPI payment (plevin) last March and then a further payment this January after referring to the FOS. How does this work when filling in section 3 on the RD40 form.  Can i submit both?. I still have the original PPI paperwork can i send with this form? 

Dazed_and_C0nfused

You will need to complete two R40's, one for the 2018:19 tax year and another for 2019:20.

I wouldn't send the original PPI paperwork but you could send a copy.  However there is no point in sending anything other than something which shows the statutory interest/compensation details.  And that should be irrelevant really if you complete the R40 correctly.

Dazed_and_C0nfused

dean1234 said:

Hi, sorry to hijack the thread but felt bad starting another for the same issue and I'm so confused.
I got a PPI payout of £3,426.25 in January 2019.
I read the guide on MSE and filled in the R40 based on what I understood.   I then received a tax refund of £53.02 nased on the figures I provided on the R40.

However I saw Martin Lewis on ITV last week and a woman phoned in and from what he said on that I'm now thinking I filled the form out wrong and could have got more?

Can anyone help?  Here are the full details -

I am a basic rate tax-payer. 
I had £0 savings that tax year.
My PPI Claim was for £3,426.25
On the letter informing me of my refund is says -  "Included in your refund is 8% interest.  HMRC will deduct 20% tax from this 8%.  You may be entitled to claim this tax back by contacting HMRC."


So... that's what i did.  I claimed back for 20% of the 8%  (8% of 3426 = 274.08 and 20% of that = £54.81)  so not sure why I got £53.02 but that's irrelevant I'm not bothered about £1.79.  lol

But since seeing Martin on TV and this other ladies example, I'm not thinking I should have got a lot more?  
Would HMRC have taken 20% tax off the full PPI claim, as well as off the 8% interest?  Could I have claimed for that too?

20% of £3426 = £685.  Could I have claimed for that?

Or did I do it right in the first place and I just got confused by what Martin said on TV?

Thanks in advance for any help.
Regards
Dean

I think you're basic problem is that you are overcomplicating things.

You can't claim a certain amount back, all you should be doing is completing the R40 with your taxable income details for the tax year in question and then HMRC will calculate any refund that is due.

If you had no other interest in that tax year then just under £200 is a common amount to be refunded but you may just as easily be entitled to all the tax deducted.

To avoid any smoke and mirrors why don't you just tell us the amount of statutory interest/compensation which was paid in that tax year and the amount of tax deducted.  Remember PPI payouts themselves aren't taxable and don't have tax deducted.

Alexosw

As a follow up quyestion on a similar theme, I have rclaimed around £450 this year out of my £1000 allowance. Black Horse contacted me yesterday, with a PPI refund of £6400, with around £800 of tax deducted. Would I be better to ask them to wait until after April 6th to refund it, or can I use previous years allowance?

Dazed_and_C0nfused

There is no "allowance".

The interest will be taxable (at 0%, 20%, 40% or 45%) in the tax year it is paid in.

How much do you expect your P60 to show your taxable pay as in the year to 5 April 2020?

How much untaxed interest do you expect to have in this tax year?

How much was the taxed interest you already received in this tax year?

Alexosw

20% rate taxpayer, cica £30K this year, Have already reacieved a rebate from HMRC of £450. I don't expect to recieve any other interest in the next 12 months, which is why am asking if it would be better to defer this Black Horse payment until the next tax year? With it being so close to April 6th, am not dure what would be best / how it works.

Dazed_and_C0nfused

If you earn £30k (as in wages, self employment etc) then the most you would expect to have refunded would be £200 (£1,000 interest taxed at 0%) so you may well already have to repay £250 to HMRC in due course for the current tax year.

You will be able to have another £1,000 taxed at 0% in the next tax year (2020:21).  So if you don't expect to receive any other (untaxed or taxed) interest then if the payment is made after 5 April 2020 you might be better from a tax perspective.  Albeit you are having to wait to get your refund.

DINK670

Hi all,
Hope someone can clarify something for me.  I had a joint PPI claim with my husband and now I'm trying to reclaim tax paid on the interest.  Does anyone know if we can do a joint R40 claim as the interest shown on the PPI claim is for both of us, and I'm assuming that we are entitled to 50% each of the interest received.  If not, I will have to show the full amount of interest received, as if I am entitled to 100% of it, and the same for my husband.
Hope that makes sense!  TIA.

Dazed_and_C0nfused

No, an R40 is for an individual not a couple.

You declare half on your R40 and your husband declares half on his.