in Reclaim PPI & other insurance
12 replies 290 views
Can someone help my wife and I received a refund of PPI from the Clydesdale bank on may 2017 for mis sold PPI from the period of 1995 to 2001. I received gross £9296.97 missus tax of £1036.91 . My wife received £7389.02 gross missus £824.84 tax. I have now put in for to claim the tax from this and as I haven't heard anything i put through a complaint. The complaint handler is now saying I owe over £800 tax as I didn't pay 20% tax on my claim. I believe this to be wrong and have spoken to her again and she has said she will check again that the tax might be different then. My wife paid little tax then and received a cheque for £67 this cant be right. and the bank cant be wrong. I think this complaint handler is familiar with PPi Can someone help. Thanks Gary
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Clydesdale would have deducted 20% tax at source from the compensatory interest amount. It should be outlined in the appendix sent to you with your final response letter and if HMRC are disputing this, you should provide this to them as evidence that Clydesdale have already deducted tax.
what I suspect has happened, however, is that you’ve made a balls up completing the R40 and put in the wrong figures, especially if HMRC are requesting more money from you.
what did you input on the R40?
it's spelt d-e-f-i-n-i-t-e-l-y
there - 'in or at that place'
their - 'owned by them'
they're - 'they are'
it's bought not brought (i just bought my chicken a suit from that new shop for £6.34)
PPI refunds are not taxable and do not have tax deducted from them.
The statutory interest paid alongside the PPI refund is taxable and does have tax deducted from it.
What exactly did you enter on the R40?
I suspect you have declared non taxable income on the R40 and are unhappy about the fact that HMRC have accepted what you have told them.
It is probably very easy to resolve and the best starting point would be for you to outline what you declared on your own R40.
Yes you can ask HMRC to refund some/all of it via form R40
She may well be due a refund of some (or all) of the tax deducted but it depends what other taxable income she has in the same tax year.
If she doesn't already complete Self Assessment returns then she can use form R40 (like a simple tax return) to make the claim. She only includes taxable income on the R40. The PPI refund itself is not taxable and won't have had tax deducted from it.
So if the interest was all received in one tax year only one form will be needed (per person).
Do you mean you want to claim any refund due to you but your husband doesn't want to pay the additional tax he might owe 🤔