Reclaim Tax 2 March 2021 at 11:48AM in Reclaim PPI & other insurance 2 replies 54 views

wobblstar

I've read that most people get only get back around £200 upon reclaiming back the tax on their interest payments. Having gone through the process myself this is what I also received, albeit my interest payment was around £18k and the tax on this was around £2k - I don't have exact figures to hand. The time range covering the PPI was some 22 years, with the PPI repayment being made to me around September 2019, the application to claim the tax back began around May 2020, requiring me to complete a self-assessment, which I was finally able to do before December 2020 and reimbursed in January 2021; the self-assessment took such a long time owing to an administration error by the tax-office.

Having read the blog "Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it" then it would suggest that I should have been able to recoup back more than the £200 paid to me in January?

[Deleted User]

wobblstar said:

Having read the blog "Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it" then it would suggest that I should have been able to recoup back more than the £200 paid to me in January?

No. It means you can reclaim the tax on it subject to the normal HMRC rules. You can earn up to £1,000 interest without being taxed, if you're a lower rate tax payer.

Dazed_and_C0nfused

Having read the blog "Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it" then it would suggest that I should have been able to recoup back more than the £200 paid to me in January?

You must have misunderstood that as for most people £200 is the normal refund which will be due (£1,000 of your interest being taxed at 0% rather than the 20% that was deducted).

If you were a low earner (sub £17,500) it could be more but not for most people.