Reclaiming tax on PPI interest. Whether to do this before or after filing your annual tax return

I'm retired and a  20% tax payer. I recently received a PPI repayment from my bank. Should I submit an R40 claim before completing this years tax return - in both cases I am talking about tax year 2019/20


  • edited 19 June 2020 at 10:04PM
    Dazed_and_C0nfusedDazed_and_C0nfused Forumite
    9.7K Posts
    1,000 Posts Third Anniversary Name Dropper
    edited 19 June 2020 at 10:04PM

    An R40 is a tax return, for those that don't need to complete a Self Assessment return.

    The statutory interest paid alongside the PPI refund is
    just another source of taxable income which you are required to include on your Self Assessment return.

    Any additional tax due/overpayment will be reflected in the overall tax calculation for 2019:20.  The amount is likely to be less than £200 but if you have very low income it could be more (assuming more tax was deducted from the statutory interest).
  • Andymcc3Andymcc3 Forumite
    2 Posts
    First Post
    Thanks, that's what I thought. HMRC still ask for an annual tax return so I'll just incorporate it there.
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