Confused about PPI Tax Refund 13 July 2020 at 2:24PM in Reclaim PPI & other insurance 1 reply 103 views

dizzyc

I've recently been successful in a PPI claim where tax has been deducted. All 3 loans are from nearly 30 years ago which is why I presume the interest is so high.I know I need to complete an R40 form for this but am confused about how it works. This is on my letter - Gross compensatory interest £5627.31, tax withheld £1125.45. I will probably be able to work out the form myself but I'm confused as to how much I am likely to get back. I am a basic rate taxpayer working full time but up until I received this payment I had no savings at all. So will I get the full £1125.45 back or just a percentage of this? Thank you in advance for any replies.

Nearlyold

You should get back between £200 and £1,000 depending on your current income before tax, 
If your current Gross income is above £17500 your refund will be £200 provided your employment income less your personal allowance is at least £5627.31 short of reaching the Higher Rate Tax threshold.