PPI Tax Rebate

Appleuser_2

Received many notes from companies telling me to claim tax back from 2018 PPI refund. Submitted R40 to HMRC myself, today they told me I OWE them 2.5k as PPI refund was only charged at 20% shoudl have been 40%.. Anyone else had this? 

[Deleted User]

Yes, people who should have paid higher rate tax have had that.

Appleuser_2

Deleted_User said:

Yes, people who should have paid higher rate tax have had that.

I was hoping for refund, I hope I completed R40 incorrectly but doesn't look like it

[Deleted User]

The important thing is to make sure you've paid the right amount of tax.  At least you didn't use a claims company.

Appleuser_2

Waiting for HMRC to contact me back, they have given me a breakdown, looks ok, but reading many post on here they may have added the PPI refund to my salary (which isn't correct) hence tax bill.. I can post exact details on here if allowed..Hopefully my error and HMRC resolve, if not then its a warning to all, think carefuly before just submitting an R40

Dazed_and_C0nfused

PPI refunds aren't taxable and don't have tax deducted.  And as such you don't need to disclose them to HMRC.

Did you include the PPI refund on the R40 as well as the statutory interest?

[Deleted User]

Your R40 should just have been the interest element of the refund, not the whole PPI refund 

Appleuser_2

18972.08	PPI Refund
2630	Tax Paid@20% on Gross Interest

Looks like HMRC are charging me tax 40% on 13154

[Deleted User]

Did you put £2630 on the R40 or not?

Appleuser_2

Deleted_User said:

Did you put £2630 on the R40 or not?

Think so but now can’t rember, can’t see it In my tax account either 

Dazed_and_C0nfused

Appleuser_2 said:

18972.08	PPI Refund
2630	Tax Paid@20% on Gross Interest

Looks like HMRC are charging me tax 40% on 13154

Which would be correct if you were already a higher rate payer AND had other taxable interest in excess of £500