📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Hmrc and claiming Interesr back

I have filled in the hmrc forms asking for interest to be paid back from 2016 they have decided to add the amount of ppi I got back to my paye amount and are demanding I pay them 1600.00 as I haven't paid enough tax is this right???

Comments

  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    1,000 Posts Second Anniversary Photogenic Name Dropper
    edited 23 February 2021 at 5:19PM
    Did you put the whole PPI refund on your R40 form or just the tax on the interest element of the refund?

    If you tried to claim you were taxed on the whole lot, HMRC would assume you received a huge interest refund; or indeed if you did receive a huge interest refund; yes you probably do owe them money. The tax free element of interest isn't huge.

    e.g. say you had a refund of £10,000 and £4000 of that was interest, you would have been taxed on the £4000. So you fill in R40 and declare £4000 of interest which is the bit you were taxed on. If you did the R40 and tried to claim tax on the £10,000, HMRC would have assumed you earned £10,000 of interest so assessed you and determined you owe them money.

    The simplest way to sort this is to check your tax filings and do it correctly.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.5K Banking & Borrowing
  • 253.3K Reduce Debt & Boost Income
  • 453.9K Spending & Discounts
  • 244.5K Work, Benefits & Business
  • 599.8K Mortgages, Homes & Bills
  • 177.2K Life & Family
  • 258.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.