Claiming tax refund on PPI payment

Linnn56

Completing tax form R40 to claim tax refund on PPI claim. Am trying to calculate the statutory interest. Would I be correct in thinking that the amount of tax paid will be 20% of the statutory interest?  

Dazed_and_C0nfused

Yes it should be.

An R40 is like a simple version of a Self Assessment return so don't forget that you only declare taxable income (and any tax deducted).

Plenty of posters on here have come unstick by declaring the PPI refund itself.

Linnn56

That’s what I’m concerned about. I wouldn’t put the whole award amount but I’m not sure how to work out the difference between interest and statutory interest as that’s the only part that’s taxable. I do know how much tax has been deducted and assume that it’s 20% of the statutory interest but I’m not sure.