PPI tax - HMRC asking for self assessment

Tupolo242

I submitted a few R40 forms to HMRC last May as I was lucky to get PPI returns from various credit cards. After waiting months they contacted asking for the paperwork proof which I dutifully copied and posted. However they have now asked for a self assessment form. I have no saving interest apart from pennies and my only source of income is a pension which is already taxed automatically (from a well known tv broadcaster) amounting to less than £14k per year. I am also now retired and with no other income nor claiming any benefits nor government pension as still too young. Just wondering if I am being driven slowly mad and being fobbed off by HMRC and if I should really be filling in a self assessment as have never had to do this before. I’ve tried calling them in the past to chase on an update but find them rather unhelpful so loathed to call again! I really feel like giving up on chasing for a refund as finding it very stressful and begs to wish I’d not bothered!

Dazed_and_C0nfused

Anyone who has interest of £10,000 or more in a single tax year has to compete a tax return for that tax year.

What exactly did you enter in the taxed interest section of the R40?

And what in the untaxed interest section?

I presume you realise that PPI refunds themselves aren't taxable and don't have tax deducted.

Tupolo242

Hi thanks for replying. & apologies for delay.
one of the forms I submitted had net interest 277.86 - tax taken off 69.46 - gross 347.32 - I didn’t fill in any other questions under UK interest and dividends section. 

The only other section I filled in as my pension amount and then the tax amount that had been taken off. 

Have I sunk myself into a very big hole with mistakes? Help! X
 

Dazed_and_C0nfused

Tupolo242 said:

Hi thanks for replying. & apologies for delay.
one of the forms I submitted had net interest 277.86 - tax taken off 69.46 - gross 347.32 - I didn’t fill in any other questions under UK interest and dividends section. 

The only other section I filled in as my pension amount and then the tax amount that had been taken off. 

Have I sunk myself into a very big hole with mistakes? Help! X
 

Those figures look perfectly logical (the net is 80% of the gross and tax 20% of the gross).

And interest of those amounts wouldn't on its own mean a Self Assessment return was necessary.  Nor would occupational pension income of £14,000.

Could you have included some other entries other than the taxed interest and pension?

Also, just noticed you referred to "a few R40 forms" in your original post.  Why exactly did you send "a few"?  This could be the crucial factor.

Tupolo242

Hallo huge thanks for your help. I can’t access the paperwork just now but can do tomorrow. 

Tupolo242

Just to add - I sent separate forms for each ppi payment received instead of adding them all together as the Hmrc person I first spoke to advised that I could do this!
Just to mention nine of the other questions on the form were applicable so I left these blank apart from personal contact details. Do you need the gross amounts of all my other payments received. 

NB. I know it doesn’t mean anything but I went to a claims company who won the cases for me so they took a huge chunk of my initial payments. My stupid decision as left claiming very late!

Tupolo242

Sorry should have said no other questions were applicable (not nine!) need my eyes tested!

Dazed_and_C0nfused

Tupolo242 said:

Just to add - I sent separate forms for each ppi payment received instead of adding them all together as the Hmrc person I first spoke to advised that I could do this!
Just to mention nine of the other questions on the form were applicable so I left these blank apart from personal contact details. Do you need the gross amounts of all my other payments received. 

NB. I know it doesn’t mean anything but I went to a claims company who won the cases for me so they took a huge chunk of my initial payments. My stupid decision as left claiming very late!

So I suspect that is your problem, possibly in more ways than one!

An R40 is basically a simple tax return.  It is for you to declare all of your taxable income for a particular tax year.  There is no circumstance where you would complete more than one R40 for the same tax year.

Also you are referring to "PPI payments" but PPI refunds aren't taxable so would never need to be declared on an R40 (or Self Assessment return).  

You would include the statutory interest which is paid alongside the PPI refund (and the tax deducted from the statutory interest).

Ignoring personal details like your name and date of birth exactly what income details have you included on all the R40's?

It does look like you have thoroughly confused HMRC and maybe they have defaulted to Self Assessment as that puts the onus on you to complete the form rather than them trying  to second guess what you have been trying to do.

Tupolo242

Hallo thanks once again.
i only included each gross, net and the amount of tax taken off on each form. The only other figure given - ie my only income - was my pension details again with gross, net & tax taken off. There were 5 forms in total.  

It looks like I may have to bite the bullet and ring them again! Heavy sigh..

Dazed_and_C0nfused

Ok so when you add up all five entries you made like this what are the total?

net interest 277.86
tax taken off 69.46
gross 347.32

Tupolo242

I will add the figures tomorrow and advise (not able to access the forms at present). Just wondering if the amounts added to a high figure could I end up paying even more tax even though the 30% tax was taken before seeing each amount in my bank  (and what would this high figure be?)