Confused about PPI Tax Refund

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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.

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  • Nearlyold
    Nearlyold Posts: 2,301 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    edited 13 July 2020 at 4:56PM
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    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. 
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