Help pls! Trying to reclaim tax on PPI payout 2019/2020

rubyann_2

Hello wonderful, helpful people!!!

Could someone please talk me very slowly through this business of trying to reclaim tax on PPI payouts.
I'm finding it horrendously confusing (figures and esp tax are not my strong point!).
I have spent time reading up on it, but still can't quite grasp it.
Sorry for the long post.

I am concerned that I will end up owing lots of tax rather than receiving a payment, and i'm not in the best financial situation atm due to unemployment (but I think it would come off my future pay code though?...)

I know i need to fill out an R40 form, which I have in front of me.

I can see no other way to do this, than share exact figures with you all, which is quite personal, hoping it's allowed - I have seen others do the same.


This is my situation:
I was fortunate enough to earn a fraction over £49k that year - which puts me just under the higher tax bracket.
So 20% and £1,000 threshold on savings.
I also received £310.98 in interest from savings (now rapidly depleting!!)

I received 2 x PPI payouts in 2019 (i used a company (not sure if that is relevant here really!) because I had no paperwork - don't judge me!, I wouldn't have claimed at all otherwise!)
Payout 1: TOTAL £3,591.66  [statement says: Gross Interest £2,471.04; Tax £494.21; Net interest £1,976.83]
Payout 2: £1,425.75 [statement says: Gross interest £829.45;  Tax £165.89;  Net interest £663.56]

So what do I put on form R40?

All the info regarding the payout numbers goes in box 3 - UK interest and dividends?

3.1: Net interest paid by banks, building societies etc, purchased life annuities and PPI payments - after tax taken off.
Is that: [1,976.83 + 663.56+310.98] = [payout 1 + payout 2 + interest from savings]

3:2 Tax taken off
[494.21+165.89]??

3:3 gross Amount
[2471.04 + 829.45]??

3.4 untaxed interest not included in box 3.3
???????

3.5, 3.6, 3.7 N/A


Don't suppose anyone can tell me from these figures if I am likely to owe HMRC money, or if I will get something back???

Thank you all in advance. 

Really, really appreciate it - spent far too long trying to work this out myself yesterday!

Dazed_and_C0nfused

You are overcomplicating life.

You have £310 untaxed interest (there is a box on the R40 specifically for that)

You have £3,300 taxed interest.  From which £660.10 tax was deducted.

Also, the savings nil rate of tax is based on your tax position without taking into account the 0% rate band.  So I would say you are a higher rate payer and will only have £500 taxed at 0%.

But all guesswork without hard facts.  Is the £49k your salary (irrelevant) or your taxable income from your job?

rubyann_2

Thank you for taking the time to reply, really appreciate it. I can answer these 2 bits straight away, just trying to get my head around the rest!!

You are overcomplicating life.

   Yup, probably!!!

But all guesswork without hard facts. Is the £49k your salary (irrelevant) or your taxable income from your job?

   £49k was my salary

Dazed_and_C0nfused

rubyann_2 said:

Thank you for taking the time to reply, really appreciate it. I can answer these 2 bits straight away, just trying to get my head around the rest!!

You are overcomplicating life.

   Yup, probably!!!

But all guesswork without hard facts. Is the £49k your salary (irrelevant) or your taxable income from your job?

   £49k was my salary

What have you entered on the R40 in the employment section?

rubyann_2

2.1 Total pay from all employments: £49000.00
2.2 Tax taken off box 2.1: £7360.80

: )

Dazed_and_C0nfused

£7360.80 suggests there are other factors which might need to be taken into account (company benefits, tax owed from a prior year etc)  but it seems likely that the interest is due to be taxed,

£500 x 0%
£500 x 20%
£2,610 x 40%

If you don't have any pension contributions to include it could be £400-500 to pay.

rubyann_2

Thank you SO much for your guidance. very much appreciated.