PPI tax reclaim processing time

ESMBB81

I submitted a form online to HMRC 15/1/24 and also posted the final statement letter from my bank that broke down the payments and tax they had deducted - this is on the HMRC website as received on 31/1/24 (though it didn't show on the site until 15/2/24 - it has been sat as 'In Progress' since then. 

I called HMRC 2 weeks ago to see when I might get something back and was told it could take up to the 25th July to get a further response - though it could be before. 

Is this kind of timescale the consistent with what other people are seeing?  I've tried to keep my expectations low, but that long seems ridiculous. 

Dazed_and_C0nfused

Up to a year would be all that unusual these days.

Presumably the form was an R40 and you haven't previously completed a Self Assessment return for the same tax year?

HMRC do pay interest (known as repayment supplement) for any tax refunded after 31 January of the end of the tax year in question.

ESMBB81

Thanks for replying - yes it was an R40 and I have never been self assessment. 

I wasn't aware of the repayment supplement - if I am eliglible would it apply from 2019-20 when I got the PPI payment and the bank paid the tax? Or do you mean in the event they don't finalise until Feb 2025, so a year after my claim? 

I 

Dazed_and_C0nfused

ESMBB81 said:

Thanks for replying - yes it was an R40 and I have never been self assessment. 

I wasn't aware of the repayment supplement - if I am eliglible would it apply from 2019-20 when I got the PPI payment and the bank paid the tax? Or do you mean in the event they don't finalise until Feb 2025, so a year after my claim? 

I 

Neither. 

If your R40 was for 2019-20 and you are due a refund (so many people misunderstand how interest is taxed it's not a given!) then HMRC will pay interest for the period from 31 January 2021 to when the refund is issued.

You can see the interest rates used here.  They have increased significantly in the last year or so.  You would only get 0.50% for part of the period but it's been 4.25% for a few months.

And that interest from HMRC isn't taxable 😊

https://www.gov.uk/government/publications/rates-and-allowances-hmrc-interest-rates-for-late-and-early-payments/rates-and-allowances-hmrc-interest-rates