PPI Tax Refund from HMRC not as expected!
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cagedtony
Posts: 2 Newbie
Hi all - I completed the R40 and i don't think HMRC have got my refund correct.
I had 3 successful PPI claims and had £904.63 taken as 20% tax. I recieved £169.44 interest from other savings that year, therfore under the £1,000 allowance. However HRMC have only refunded £165.39, when they took £904 and i was £831 under the threshold.
HMRC are saying this is correct as they have followed procedure and this is income tax. This can't be right surely?
I had 3 successful PPI claims and had £904.63 taken as 20% tax. I recieved £169.44 interest from other savings that year, therfore under the £1,000 allowance. However HRMC have only refunded £165.39, when they took £904 and i was £831 under the threshold.
HMRC are saying this is correct as they have followed procedure and this is income tax. This can't be right surely?
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Comments
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What other income did you have in the year ?
1 -
Sounds correct to me.
Looks like you can have £1,000 interest taxed at 0%. You had used £169 from other untaxed interest leaving £831 to be taxed at 0% instead of 20%. Saving you £166.
The rest of your interest would be taxed at 20%, which is what the PPI company would have deducted.
The above assumes you aren't a higher rate payer and aren't on a low income either when the savings starter rate of £5,000 taxed at 0% would come into play.2 -
Thanks for both your comments, i work full time at the the normal lower rate tax. I guess i don't see this as 'income' as such, as it was money owed to me. But what you say makes sense, i just thought that i had £904 taken that they shouldn't. Never mind, I still have an extra £165 thanks to Martin Lewis.
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