Reclaim tax paid on PPI compensation

barnyg

I have just received a refund of PPI on which I have paid £400 tax. Do I have to wait until the end of the current tax year before claiming a refund. Thanks.

Dazed_and_C0nfused

Not always.  

Are you currently in receipt of a pension/employment income?

Do you normally complete a Self Assessment return?

Are you certain a refund is due?

I have just received a refund of PPI on which I have paid £400 tax. 

Also, if you check your paperwork I think you'll find no tax has been deducted from the PPI refund.  As it isn't taxable and therefore tax isn't deducted from it.

You will have been paid some interest, which is taxable and does have tax deducted from it.

Until you get that part straight you will never successfully claim a tax refund.  As countless posters on here have found to their cost!

[Deleted User]

You can claim the tax on the interest back. Make sure when you fill in the R40 form that you are only declaring the interest element of the refund when you declare the amount. 

Also note as above depending on how much you earn and got in interest, you may owe HMRC money