Reclaiming tax on interest on joint PPI claim - check my workings, please?
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stupid_question_2
Posts: 8 Forumite
Hello all you lovely knowledgable people!
Got a PPI payout on a joint loan, and rather than a separate payment each it was a single payment into our joint account. I want to claim back the tax paid on the interest, and just want to make sure I'm doing this right.
Questions:
1 - does it have to be split 50/50? I'm a taxpayer, he's not.
2 - assuming a 50/50 split, it's an odd number of pence - does one person claim a penny more than the other so it adds up to the correct total?
3 - same question as 2, for interest on a joint account (grand total of 19 pence!).
4 - where do I put reward payments (Bank of Scotland Reward accounts) - I'm assuming it doesn't count as interest, because the bank deducted tax before payment?
2 - assuming a 50/50 split, it's an odd number of pence - does one person claim a penny more than the other so it adds up to the correct total?
3 - same question as 2, for interest on a joint account (grand total of 19 pence!).
4 - where do I put reward payments (Bank of Scotland Reward accounts) - I'm assuming it doesn't count as interest, because the bank deducted tax before payment?
How I think we should do it:
Total compensation interest £2427.95
Tax deducted £485.59
Interest on joint bank account £0.19
Interest on my separate bank account £0.05
BOS reward account - joint account £30 gross, £6 tax deducted
BOS reward account - sole account £30 gross, £6 tax deducted
My form - 3.1 net interest £971.18
3.2 tax taken off £242.79
3.3 gross amount £1213.97
3.4 untaxed interest £0.14
plus reward payments £45 gross, £9 tax deducted - does this go in box 7.4/7.5? If so, what do I put as the description in box 7.6?
Partner's form - 3.1 net interest £971.18
3.2 tax taken off £242.80
3.3 gross amount £1213.98
3.4 untaxed interest £0.10
plus reward payment £15 gross, £3 tax deducted
Tax deducted £485.59
Interest on joint bank account £0.19
Interest on my separate bank account £0.05
BOS reward account - joint account £30 gross, £6 tax deducted
BOS reward account - sole account £30 gross, £6 tax deducted
My form - 3.1 net interest £971.18
3.2 tax taken off £242.79
3.3 gross amount £1213.97
3.4 untaxed interest £0.14
plus reward payments £45 gross, £9 tax deducted - does this go in box 7.4/7.5? If so, what do I put as the description in box 7.6?
Partner's form - 3.1 net interest £971.18
3.2 tax taken off £242.80
3.3 gross amount £1213.98
3.4 untaxed interest £0.10
plus reward payment £15 gross, £3 tax deducted
I know I'm probably overthinking this, but I want to get it right first time and avoid any problems. Thanks in advance for any help/advice.
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Comments
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1. Why do you think anything other than 50:50 might be applicable?
2. Yes, one person can have 1p more than the other.
3. Swap that one around and you then have matching figures i.e £1.51 + £15.26 = £16.77
£1.52 + £15.25 = £16.77
4. If it's like the Halifax reward system then correct, it isn't interest. It would go in the other income field on an R40. These payments are known as Annual Payments (even though not paid annually!).
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Dazed_and_C0nfused said:1. Why do you think anything other than 50:50 might be applicable?
I didn't, really, I was just curious. Thanks for replying.
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