HMRC and ppi refund

sirjasper_2

In January 2020 i received a ppi refund for over 26k. Quite unexpected but very nice i deposited it in my building society account.In early 2022 i read on Martins site that it was possible to claim a refund if tax had been deducted before the refund was paid.I sent off R40 ,it was returned as not filled in correctly,i spoke to HRMC and was instructed about how to fill it in.Sent it,but again returned.This time i  returned it with a letter asking if they could please help me as i was obviously confused so i sent them all the details from the bank,my p60 and anything else i could think of.This i sent by special delivery on 15/07/22.I got a letter from them Friday 2/9/22 saying i owed them over £3600.Spent a sleepless couple of nights ,rang them today.40 mins to get through, explained problem,put on hold, after 30mins dead phone.Rang again 50mins to get through.Explained it all again put on hold told figures were correct and i owed the money.Tried to explain that ppi refund was not taxable only the interest portion. but to no avail.What can i do now.I am a pensioner with a small works pension plus my retirement pension.Any advice much appreciated

Dazed_and_C0nfused

HMRC and ppi refund

You appear to have made a fundamental mistake.

Tax is not deducted from PPI refunds.  Never has been never will be.

Tax is deducted from the statutory interest paid alongside the PPI refund.

What exactly did you enter on the R40?

Chances are HMRC have sent you a calculation based on exactly what you entered.  Or you were a higher rate payer.

sirjasper_2

Thank you for your reply.As i said in my post i did try to explain that it was only the interest portion that was taxed.I assume that i had filled it out incorrectly even though i spoke to them for advice before i sent it off which is why i sent them all the paperwork with a letter asking if they would check if it had been filled in correctly.,but still no joy.I am not against progress but it was so much better when you could visit a tax office for advice.I have asked them to return all my paperwork which he said he would do,but did not know how long it would take.Thanks again

Dazed_and_C0nfused

Have you looked through the calculation you've received and can you see an entry that you think may be wrong?

Are the works pension and state pension correct?

What are the figures used in the calculation for taxed interest?

dunstonh

Tried to explain that ppi refund was not taxable only the interest portion.

You shouldnt need to explain it as they don't know that figure.  The only figures you provide HMRC are the amount of the interest and the tax deducted.  You never tell them the refund of contributions as that is not taxable and not of interest to them.

You are best putting this in writing to HMRC if you are struggling with the telephone line.

sirjasper_2

Thank you.Sorry for delay in replying but had small flood due to very heavy thundery rain.HMRC were supplied with all the information as i sent copies of the correspondence from the bank with a covering letter asking that if i had put incorrect figures on the r40 could they please insert the correct ones.I also asked this when speaking to them.I have ,as you suggest, sent an email stating all this and am awaiting a reply,but not holding my breath,.Again many thanks for your replies and i will update as soon as i get an answer.