in Reclaim PPI & other insurance
1 reply 52 views
I may be thick but here goes. I’m a basic rate taxpayer. On works pension. No savings. Got ppi payout last year of c£3900. Tax deducted was £217. HMRC are telling me that the first £1000 is tax free but the remaining £2900 is taxable at 20%. I therefore owe them a further £422. Is this correct ?
This discussion has been closed.
Latest MSE News and Guides
Martin and MSE campaign win
April's 20% energy price guarantee hike postponedMSE News
Childcare budget boost
More support for children from nine months and those on Universal CreditMSE News
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
It is only the interest element of the PPI redress that HMRC take into account. Not the capital element.
i..e refund of premiums plus interest is what you receive. However, HMRC only need to know about the interest. It sounds like you have given them the refund of premiums plus interest figure.
So, you need to give them the revised figure of the interest only (which should include any savings accounts interest you have received as well)