Tax on PPI claim

Dbanks99

My Mother was taxed over £600 on a PPI reclaimed payment. She is a pensioner. Can she get this money back herself. 

brettcta

Yes, though she’ll likely not get the full £600 refund and, depending on her tax band, may end up owing more.

she will need to speak to HMRC to discuss.

Dazed_and_C0nfused

Dbanks99 said:

My Mother was taxed over £600 on a PPI reclaimed payment. She is a pensioner. Can she get this money back herself. 

Before you get in a pickle with HMRC you should be aware PPI refunds are not taxable and do not have tax deducted.

It is only the statutory interest which is paid alongside PPI refunds that is taxable and has tax deducted.

If she doesn't currently complete Self Assessment returns then she can complete form R40 (available on gov.uk) to claim any overpaid tax back.

An R40 is like a Self Assessment return in that it is for her to declare all taxable income for the tax year in question.

The fact that she is a pensioner had absolutely no relevance to this, it is what her total taxable income, and type of income, which will determine any tax overpaid (or extra tax to pay).

CM06

Hi 
I have recently lost my husband and his pensions have been transferred to me
I am having to pay tax on the monies i am receiving is this right 
also can any 1 enlighten me if i am eligible to claim anything from his State Pension
he only had it 12 months and sadly passed away due to Covid in February 

TIA

McKneff

So sorry for the loss of your hubby

Add all your income up together regarding the tax question and post again. 

Speak to the DWP regarding claiming any of your hsbands pension

Zanderman

CM06 said:

Hi 
I have recently lost my husband and his pensions have been transferred to me
I am having to pay tax on the monies i am receiving is this right 
also can any 1 enlighten me if i am eligible to claim anything from his State Pension
he only had it 12 months and sadly passed away due to Covid in February 

TIA

Sorry for your loss.
Re being taxed, all income is taxable, even pensions. Whether it's the right amount of tax is another matter.  
But this isn't the right place to ask your questions.
You're posting in someone's thread about PPI in the forum section about PPI.  But you're asking about tax on pensions.
You'd be better starting a thread of your own and in the right part of the forum.  
Probably best here:  https://forums.moneysavingexpert.com/categories/pensions-annuities-retirement-planning where you should click on 'new thread' and ask your questions there.