PPI tax - HMRC asking for self assessment

Tupolo242

Hallo Sincere apologies for the delay as have just managed to get the figures together.
So there were 4 forms R40 submitted to HMRC. I have another claim which haven’t as yet completed as this paperwork was more difficult to understand!
As requested the amounts of the four forms are
Net total: £12,234.39
Tax total taken: £3,058.59
Gross total: £15,292.98

Not sure if this helps but HMRC have said they cannot deal with my claim because I have taxed investment income of more than £10,000 and that they must deal with my taxes under the self assessment tax system and to fill in a return for tax year ending 5 April 2020 (which they said was included but nowhere to be seen).. I’m assume they are referring to my work pension here as no other figures were included apart from the ppi figures in columns 31, 32 & 33.

I really appreciate your help & advice as have never had to deal direct with tax issues in my life as have always worked for a company. This is just so very stressful.

Dazed_and_C0nfused

As you received gross interest in excess of £10,000 then a Self Assessment return is required.

It's basically replicating the information on the R40 but you complete a single return for a specific tax year not four.

You include all taxable income on one form.  You can only do this accurately once you have worked out the figures for the additional interest payment (assuming it was paid in the same tax year).

You have 3 months to do this from when the Self Assessment return (or notice to file a return) is issued.

It does say this on the notes for the R40, which your presumably missed.

If your savings or investment income exceeds £10,000 (before tax) you may need to fill in a tax return.

Dazed_and_C0nfused

It's worth getting it right as you may get a few hundred pounds tax refund.

Most people would get a maximum of £200 but your relatively low pension income means more of the interest will be taxed at 0% meaning more of the the 20% tax deducted at source is repayable.

Tupolo242

Hallo many thanks once again for your reassurance and advice.
I’ll contact HMRC tomorrow to request the form they forgot to include. They sent their last request in December so I have a bit of time left.
In your message you indicated once I have worked out figures for additional interest payments- does this refer to the additional R40 form for Lloyds loan that I had not yet submitted to Hmrc .. or is this yet another amount I have to try to work out from the ppi paperwork.  

Ps just wondering if I Am I likely to get stung for even more tax due to the interest received?! 😳

Dazed_and_C0nfused

Tupolo242 said:

Hallo many thanks once again for your reassurance and advice.
I’ll contact HMRC tomorrow to request the form they forgot to include. They sent their last request in December so I have a bit of time left.
In your message you indicated once I have worked out figures for additional interest payments- does this refer to the additional R40 form for Lloyds loan that I had not yet submitted to Hmrc .. or is this yet another amount I have to try to work out from the ppi paperwork.  

Ps just wondering if I Am I likely to get stung for even more tax due to the interest received?! 😳

I really do think you are over complicating things.

Forget the R40's, you should never have bothered filling one in (never mind four 😳).

You need to complete the Self Assessment return with details of all taxable income.

You have already added up at least four of the taxed interest amounts as you have put the totals in one of your posts on this thread.  Re do that to include all of the taxed interest payments received in the tax year you are claiming for.  

Then you need all other taxable income details, which you presumably have to hand from when you completed the R40.

From what you have posted in this thread your total taxable income is ~£30k so nowhere near enough to be liable to 40%.

Assuming the missing taxed interest amount isn't massive then there's no reason to think you would owe extra tax.

Most of the interest will be due to be taxed at 20% (the same rate as already deducted by the company who paid you the interest).

But some will be due to be taxed at 0% and that is why you should get a refund.  You have paid 20% on all the interest but some (maybe £4,500 of it) is only due to be taxed at 0% so you get the 20% tax on that element back.

HMRC do all the calculations for you, you just have to complete the Self Assessment return (accurately 😊).

You can probably do it all online in 10 minutes if you log into your Personal Tax Account.

Tupolo242

Thankyou so very much for your advice, help and patience in my hmrc trauma. Your help has been has been very much appreciated. 

I haven’t looked at the remaining figures of the final ppi as the Lloyds loan letter was too complicated to digest but will do so tomorrow. That was a larger amount so do hope it won’t push me over the edge!