Then.tax Ltd PPI interest claim

Dazed_and_C0nfused

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Dazed_and_C0nfused said:

sharkmeister said:

Thanks Dunstonh. I was thinking about just paying the fee as in the grand scheme of things it would be small in relation to the whole amount I should be due back and would save me about £300 as their commission is 48%.

The interest amount I got back and declared on my self assessment was just under £4,000. This was input under income in the box called Taxed UK interest - the net amount after tax has been taken off. As the tax was taken off prior to me recieving the PPI payment that's where I've estimated the £800 due back. I am a normal rate taxpayer and am both employed full time and self employed part time.

I do need to check the original PPI payment though to be sure but as it's the amount of interest declared I think the £800 is realistic. Please correct me if I am wrong though as I don't want to get it wrong.

You cannot use an R40 for a tax year you have completed a tax return for (or need to complete a return for).

Any overpayment would have been reflected in your Self Assessment tax calculation for that tax year. 

As far as HMRC are concerned there is nothing more you can or should do now, it was all resolved when you filed your tax return.

Shame you didn't appreciate that when authorising this company to do something they couldn't actually do 😳

So how do I claim back the money that was deducted from my PPI payment?

You can't.  You declared the income on your Self Assessment return and any overpayment would have been reflected on your Self Assessment calculation for that tax year.

For most people the tax overpaid is often just £200 (or less) so might just have reduced your Self Assessment liability, not be an actual refund as such.

Have you got the SA302 calculation for that tax year to hand?

I declared the amount after tax was taken off. So given that Barclays paid £800 direct to inland revenue. That to me is a tax overpayment. Looking at the SA302 for that year its got interest from banks at £4,743 which is the gross PPI payment. It's then got tax deducted through interest recieved at £948.75.

So are you saying that it should be an adjustment of the difference of the £800 paid by Barclays and the £948.75 on my SA302?

If so, then am I due a rebte of £148.75? Apologies I'm no tax expert.

You are overthinking it.

You have declared the net interest and that has been crossed up to account for the tax deducted.

How has the £4,743 then been taxed further down the calculation?

Sorry I think I'm getting confused.

At the bottom it says how we worked out your tax it has listed under Savings interest from banks or building socieities:

Basic rate band at nil rate £1,000 x 0% = £0.00 Tax
Basic rate £3,742 x 20% = £748.60 Tax (This is the amount I declared on my self assessment and tax has been paid accordingly)

then in the minus tax deducted on the line Interest recieved from UK banks and Building societies it has £948.75.

Does this suggest they have already recieved £948.75 paid from banks on my behalf which has been deducted from the PPI amount I was due. This is the statuatory interest I recieved to put me back to my original position and therefore should not be taxed? Really confused now. LOL.

It means you have been taxed on the interest you declared (grossed up to account for the tax).

Your interest that was taxed via Self Assessment was £4,742.

The tax due on that was £748.60

The tax deducted at source was £948.75.

So your total Self Assessment liability is £200.15 less than if you hadn't received the interest.

Basically you got this £200 benefit as soon as you filed your tax return.  Anything you have done recently was completely unnecessary as you seemingly did it all correctly in the first place.

sharkmeister

Ok thank you. I understand now what has happened. Basically because the money was paid as tax owed so was offset against my bill. It would have only mattered if I was under the income tax threshold. Thank you for your help.