PPI Tax reclaim

pauline123

Hello, can any one help?

I'm trying to reclaim the tax paid on a PPI payout I Had this year, from santander,
but i'm unsure what info to put where, this is the info on my letter
A- Full refund of PPI payments      £81744
B- Associated interest                     £995.50
C- any over limit fees being refunded   £0
D- *8% interest                                £ 828.70
E- Any successful claims made against PPI Policy  £0.00
F- Gross redress  amount A+ B+ C+D+E     £2641.64
G- Income Tax Deducted @ 20%=20% X D   £165.74
H- Net interest paid to you  = D- G 662.96
I- Net offer to be paid to you   £2475.90

so which amount do i need to fill in 
for
1)Net interest paid by banks, building societies etc, purchased life annuities and PPI payments

After tax taken off.

£

2)Tax taken off the gross interest paid by banks, building societies and purchased life annuities.

£

3)Gross interest paid by banks, building societies and purchased life annuities

Before tax taken off.

£

Do you receive interest that has not been taxed at all?

Yes?

No?

Big thank you if you can Help

Lond2009

Hi, please can someone confirm if I have missed the deadline to reclaim tax. My ppi payout was in 2019 and jan 2020. Thank you 

Dazed_and_C0nfused

No, it is the 2015:16 tax year which has just gone out if time to make any tax claim.

2019 is a bit vague in terms of tax, if this was in 2018:19 tax year not 2019:20 then you will need to complete two R40's, one for each tax year.

dean1234

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

Hi.  I posted the above back in March and was told I had done it completely wrong and should have found out the figure that equated to 8% interest and worked from there.

I then wrote to the bank involved in my PPI claim and 3 months later finally got a response.  It shows -
Gross Interest - £2034.70
Income Tax Deducted (20%) - £406.94
Net Amount Paid or Credited - £1627.76

Does that mean I can claim £406.94 back?  

As said I already filled out the R40 (incorrectly) and received a cheque for £53.02 based on that, but I have not yet cashed it in, so if I contact them and explain I assume I should be able to rip that cheque up and them send me the correct amount?

Thanks
Dean

Dazed_and_C0nfused

dean1234 said:

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

Hi.  I posted the above back in March and was told I had done it completely wrong and should have found out the figure that equated to 8% interest and worked from there.

I then wrote to the bank involved in my PPI claim and 3 months later finally got a response.  It shows -
Gross Interest - £2034.70
Income Tax Deducted (20%) - £406.94
Net Amount Paid or Credited - £1627.76

Does that mean I can claim £406.94 back?  

As said I already filled out the R40 (incorrectly) and received a cheque for £53.02 based on that, but I have not yet cashed it in, so if I contact them and explain I assume I should be able to rip that cheque up and them send me the correct amount?

Thanks
Dean

Probably not.

If you paid basic rate tax on at least £5,000 of wages or pension income then you are only entitled to have £1,000 of the interest taxed at 0%.

So the interest would be taxed like this,

£1,000 x 0% = £0.00
£1,034 x 20% = £206.80
Tax already paid = £406.94
Tax overpaid = £200.14*

*This assumes you don't cash the original cheque for £53.02

You originally overcomplicated things, you aren't really "claiming" anything, you should simply have completed the R40 with actual taxable income details and HMRC then calculate any refund due.

If you were a low earner then post the other income details as you could be due a larger refund.