Taxed on PPI repayments 7 May 2021 at 11:13AM in Reclaim PPI & other insurance 20 replies 424 views

Dazed_and_C0nfused

The only income I declared was that as stated on my P60.

If that is true then why would you expect to be due any tax refund?

It is sounding more and more likely you have not completed the R40 correctly.

LeeUK

Dazed_and_C0nfused said:

The only income I declared was that as stated on my P60.

If that is true then why would you expect to be due any tax refund?

It is sounding more and more likely you have not completed the R40 correctly.

I can only fill in what the online form asked me. The paper form appears to have more questions. So it's not the fact I filled it in incorrectly, I just wasn't asked for savings interest on the form.

Dazed_and_C0nfused

The principal purpose of the form is for interest so I doubt that very much.

LeeUK

Dazed_and_C0nfused said:

The principal purpose of the form is for interest so I doubt that very much.

The online form did not ask me what savings interest I received, but whatever. 

[Deleted User]

Simple questions then:

1) How much interest did you get on the PPI refund? Not the refund itself, just the interest which is all that is taxable

2) How much were you taxed on the interest?

3) How much other interest did you earn that year?

4) What did you put on the form as your interest total?

LeeUK

Deleted_User said:

Simple questions then:

1) How much interest did you get on the PPI refund? Not the refund itself, just the interest which is all that is taxable

2) How much were you taxed on the interest?

3) How much other interest did you earn that year?

4) What did you put on the form as your interest total?

I used a 3rd party claims service (yes I know it's not very MSE but I couldn't be bothered to do it all myself at the time and it was money for nothing). The 5 x invoices they sent me have the amount I got in PPI minus their fee, and the amount of income tax deducted by lender listed.

For example from Halifax:

So is it right I would be claiming the £44.51 back from HMRC?

unholyangel

LeeUK said:

Dazed_and_C0nfused said:

The principal purpose of the form is for interest so I doubt that very much.

The online form did not ask me what savings interest I received, but whatever. 

The online form asks if you had any income from savings or investments. Unless you answer yes to that question, it won't ask how much income you had from that source. 

Given the title of the form on r40 (reclaim tax deducted from savings and investments), it should be intuitive to answer yes. 

LeeUK

unholyangel said:

LeeUK said:

Dazed_and_C0nfused said:

The principal purpose of the form is for interest so I doubt that very much.

The online form did not ask me what savings interest I received, but whatever. 

The online form asks if you had any income from savings or investments. Unless you answer yes to that question, it won't ask how much income you had from that source. 

Given the title of the form on r40 (reclaim tax deducted from savings and investments), it should be intuitive to answer yes. 

OK I get you. So is it the £44.51 from the example above I'm claiming back or just a percentage of that?

unholyangel

LeeUK said:

unholyangel said:

LeeUK said:

Dazed_and_C0nfused said:

The principal purpose of the form is for interest so I doubt that very much.

The online form did not ask me what savings interest I received, but whatever. 

The online form asks if you had any income from savings or investments. Unless you answer yes to that question, it won't ask how much income you had from that source. 

Given the title of the form on r40 (reclaim tax deducted from savings and investments), it should be intuitive to answer yes. 

OK I get you. So is it the £44.51 from the example above I'm claiming back or just a percentage of that?

Refer back to your award letter. It will have an amount of statutory compensation (it might be worded as a variation of that, it varies bank to bank...it might say 8% statutory interest or compensation interest), this is the amount you use in the income box on the form. You then put the tax deducted/withheld in the tax box. 

Remember if you have more than one PPI claim for the same year to add them all up. And also include any other interest you received/expect to receive (perhaps from bank or building society accounts)

Dazed_and_C0nfused

You aren't claiming anything back in that sense.

You are declaring your total taxable income, and tax deducted, to HMRC in order that they can review your tax position for the tax year in question.  You may well be due a refund of c£42-43.  Or the whole £44.51.  or you could owe an extra £44.51.

Unless you disclose everything you have entered on the R40 no one can know for certain.