High Rate Tax Payer

michdeb

I'm a high rate tax payer but my PPI refund was taxed at 20%.  I've not earned £500 in interest this year, so can I get this back or will HMRC just add more tax and say I hadn't paid enough?

brettcta

Speak to HMRC and find out as they will have your full tax picture in front of them.

Dazed_and_C0nfused

As always with tax it all about the detail.

You could easily be due a tax refund.  And just as easily owe additional tax.

Say you have received £150 in untaxed interest and £600 in taxed interest (£120 tax deducted by the PPI company).

This £750 in interest would be taxed,

£500 x 0% = £0.00
£250 x 40% = £100.00

Total tax due £100.00
Total tax paid £120.00
Tax overpaid £20.00