How to reclaimtax on PPI interest through online self-assessment form?

gerry39

I need to reclaim the tax I paid on a recent PPI payment. But I've already submitted my 2019-20  tax return online.   I'm registered for self-assessment, so I can't use the R40 form  - but where on earth on my tax return should I submit the claim? Have pored over it and can't find where it should go! Also, spent hours on phone waiting to connect to HMRC, being cut off when being put through to correct person, more hours waiting to connect etc! Figured it's quicker to ask you guys! Please help!

Dazed_and_C0nfused

You cannot make a "claim" in the way you seem to expect.

I need to reclaim the tax I paid on a recent PPI payment. 

By recent do you mean in the last 11 months i.e. the 2020:21 tax year?

If it was in 2019:20 then you simply file an amended Self Assessment return (you have until at least 31 January 2022 to do this) including the income (and tax deduction) you failed to declare on your original return.

Before you go any further though you are presumably aware that PPI refunds are not taxable and do not have tax deducted from them.  Statutory interest paid alongside the PPI refund is taxable and does have tax deducted.

There is a section on the core part of the return specifically for taxed interest.

The maximum refund for most people (assuming this amount of tax was deducted in the first place) is about £200.  But any untaxed interest also received in the same tax year is likely to reduce the amount of tax overpaid.

gerry39

Yes, it's 19/20 I am claiming for.
Ah, didn't remember the PPI interest was same as savings interest!
Thank you, will go back to the taxed interest section and amend!

mulder68

Hi
I have the same issue. I have spent two hours on the telephone to HMRC today to two different advisors and neither of them could really help. 

I have 4 PPI payments that I received between 2019 and 2020, totalling approximately £9200. I have had approximately £1200 deducted at source for tax on interest. 
I am looking to amend my return and I would like to know which section of the tax return do I add this and which figure do I add. The interest amount of say £1000 or the tax paid on that interest of £200?
Thanks in advance for any assistance.

Dazed_and_C0nfused

mulder68 said:

Hi
I have the same issue. I have spent two hours on the telephone to HMRC today to two different advisors and neither of them could really help. 

I have 4 PPI payments that I received between 2019 and 2020, totalling approximately £9200. I have had approximately £1200 deducted at source for tax on interest. 
I am looking to amend my return and I would like to know which section of the tax return do I add this and which figure do I add. The interest amount of say £1000 or the tax paid on that interest of £200?
Thanks in advance for any assistance.

On the paper version of the Self Assessment return (viewable on gov.uk) it is box 1 on page TR3.  Taxed interest.

You enter the net amount after tax so neither £1,000 or £200.

I presume you are aware that PPI refunds are not taxable and do not have tax deducted from them.  It is just the statutory interest that is taxable and has tax deducted.

mulder68

Hi
Thanks for the response. Yes, I am aware it is just the interest. So if the interest is £1000 and I paid £200, I enter £1000 or £800?
Thanks again

mulder68

Actually it is ok. I have managed to find it. It is the net amount of interest after tax that needs to be submitted.
Thanks for the help.