Ppi tax refund

cas13g

I received ppi in March and £478 tax was taken off.HMRC have told me I'm not entitled to a refund as I've used up my allowance for 2019/20 tax year.Is this correct?

brettcta

BRB, let me just bring up your tax records.

Dazed_and_C0nfused

Do you have any normal interest from savings?
(ignoring ISA's)

cas13g

Only interest I get is from my santander 123 account which totals about £20 for the year.

[Deleted User]

cas13g said:

Only interest I get is from my santander 123 account which totals about £20 for the year.

You really need to be taking this up with HMRC if you can't see where your allowance has been used up. 

cas13g

I have called them.I work full time hours and pay tax at the normal rate.I told the woman I hadn't used up my savings allowance and she told me that is nothing to do with ppi so I'm not due a refund.She even sent a letter out telling me the same.

[Deleted User]

cas13g said:

I have called them.I work full time hours and pay tax at the normal rate.I told the woman I hadn't used up my savings allowance and she told me that is nothing to do with ppi so I'm not due a refund.She even sent a letter out telling me the same.

Have you perhaps filled in the R40 form incorrectly? Did you claim tax back only on the interest element  of your PPI redress as you should have? 

cas13g

I might have filled it out wrongly.I did it twice with no interest earned the second time with interest from my 123 account then called about it.

Dazed_and_C0nfused

If you are earning less than £43k (more if not Scottish resident for tax purposes) from your job then you would normally be due about £190 tax refund from the £478 tax deducted.

Have you received your P60 yet for 2019:20?

cas13g

I do earn less than that.My P60 hasn't been generated yet.

Dazed_and_C0nfused

Once you have your P60 you should be able to claim a refund.

Based on the posts in this thread you have taxable interest of £2,410 (£20 from Santander and £2,390 paid alongside the PPI refund)

As a basic rate payer the tax due on £2,410 would be,
£1,000 x 0% = £0
£1,410 x 20% = £282

You have already paid £478 on the £2,390 interest paid alongside the PPI refund so would have overpaid £196.  You probably owe a pound or two on your PAYE income (which is quite normal) so would actually get maybe £194 actual tax refund.

If your earned a low income (sub £17,500) then you may be due more of the £478 back but most people will get no more than £200 back irrespective of how much tax was deducted from the PPI related interest.