Same answer per your other comment Everyone is taxed on the interest element of the PPI refund, NOTthe PPI refund Yes you can ask HMRC to refund some/all of it via form R40
Thankyou. Couldn't find previous answer. New to forum, sorry
It was just explaining I was copy/pasting the answer, not a criticism
Just ensure that you enter ONLY the interest element that you were taxed on, people frequently put the whole PPI refund on there and end up owing HMRC tax. Remember too that the interest also comes from other sources like savings etc so it needs to go on the end of tax year form alongside any other interest earned. People have a theoretical tax free limit of £1000 for interest but this is affected by many factors so she may not get £600 back, but she should get some.
Feel free to post on here if you have any issues with the form to be 100% sure before you send it off.
I've been taxed on my PPI refunds and filled in the form on the gov.uk site last week to claim back but received a letter today saying I've "paid the right amount of tax" for 2020/21 and therefore no refund is forthcoming.
No way have I had over £1000 in interest payments last year to no idea how this is!
I've been taxed on my PPI refunds and filled in the form on the gov.uk site last week to claim back but received a letter today saying I've "paid the right amount of tax" for 2020/21 and therefore no refund is forthcoming.
No way have I had over £1000 in interest payments last year to no idea how this is!
Phone and ask, though it’s possible you’ve filled the form in wrong.
helpful tips
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)
I've been taxed on my PPI refunds and filled in the form on the gov.uk site last week to claim back but received a letter today saying I've "paid the right amount of tax" for 2020/21 and therefore no refund is forthcoming.
No way have I had over £1000 in interest payments last year to no idea how this is!
Phone and ask, though it’s possible you’ve filled the form in wrong.
R40 online, it even said it was for savings and PPI next to it.
I didn’t say you’d filled in the wrong form, I said you’ve possibly filled it in wrong.
helpful tips
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)
I've been taxed on my PPI refunds and filled in the form on the gov.uk site last week to claim back but received a letter today saying I've "paid the right amount of tax" for 2020/21 and therefore no refund is forthcoming.
No way have I had over £1000 in interest payments last year to no idea how this is!
Phone and ask, though it’s possible you’ve filled the form in wrong.
R40 online, it even said it was for savings and PPI next to it.
PPI refunds are not taxable and do not have tax deducted.
Statutory interest paid alongside PPI refunds is taxable and does have tax deducted.
What exactly did you declare on the R40?
You would be surprised by the number of posters on here who have failed to understand how to complete the R40 and got no refund, or even a bill, as a result of declaring non taxable income on an R40.
Hmm not sure then. I'm sure I answered the questions correctly as I've just been through it again and I can remember what I selected. The only income I declared was that as stated on my P60. Not the amount of PPI I received.
I claimed back PPI from 5 credit cards last year and I had about £200+ in interest taken off the settlements In total.
Replies
Everyone is taxed on the interest element of the PPI refund, NOT the PPI refund
Yes you can ask HMRC to refund some/all of it via form R40
Any earnings or pension income will eat into this until it is eventually reduced to £0 for very high earners.
As a pensioner she could well be due all £600 back but that would be due to relatively low income, not the fact that she is a pensioner.
No way have I had over £1000 in interest payments last year to no idea how this is!
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)
This one: https://www.gov.uk/government/publications/income-tax-claim-for-repayment-of-tax-deducted-from-savings-and-investments-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.
Statutory interest paid alongside PPI refunds is taxable and does have tax deducted.
What exactly did you declare on the R40?
You would be surprised by the number of posters on here who have failed to understand how to complete the R40 and got no refund, or even a bill, as a result of declaring non taxable income on an R40.
I claimed back PPI from 5 credit cards last year and I had about £200+ in interest taken off the settlements In total.