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Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it - Page 10

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Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it

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  • edited 18 September 2019 at 9:50PM
    AndyCFAndyCF Forumite
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    edited 18 September 2019 at 9:50PM
    Sorry if this is a silly question :(

    I had two small PPI payouts both in the same (tax) year, they were actually paid if I recall correctly about two weeks apart. I don't need a separate form for each do I ? As they are in the same 'year' its the total yes ?

    I am not sure about the P45/P60 code either as they had me down as self-employed (and demanded a return) even though I was not working at the time nor claiming much if at all that year, or if I was it was for a couple of months (all declared) but unsure on 'code' ? I guess finding the 'code' will be on their site unless there's an easy way to look it up, I could not see anything from a cursory search though.

    Thanks for any assistance on these two questions, although I think the first one I've self answered. :)
  • AndyCFAndyCF Forumite
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    Slightly confused :( Any help appreciated. I think I've figured most of it out, although having bits of money from various sources (but all low figures) and I think I was self employed for a month or two of it as well adds to the mess. At least I was not 'employed' so there's no "external employer" stuff to attend to I suppose.
    3.1 Net interest paid by banks, building societies etc, purchased
    life annuities and PPI payments – after tax taken off
    I'm assuming this is the -total- interest paid to me in that tax year yes ? Including the (pence, yes really) paid on bank accounts and the PPI ? , just the 'total interest paid this year'
    3.2 Tax taken off
    So this would be as it says ? The tax HMRC said was 'due' that year ? So when I filled in the self assessment form and it came back saying "you owe £x" , this is that ?
    3.3 Gross amount – the amount before tax taken off
    Amount of what ? :) You mean the total interest that would of been paid if there was say no tax due on it ? That cannot be correct as that is the same as the first one! This must mean the amount I earned/received in total in that tax year then yes ?
  • Dazed_and_confusedDazed_and_confused Forumite
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    You can't complete an R40 if you filed a Self Assessment tax return for the tax year in question.

    It is one or the other not both.

    If you failed to declare your PPI related interest on the Self Assessment return then you will need to file an amended Self Assessment return for that year. Assuming it is 2017:18 or 2018:19.

    If it's an earlier tax year than that then Google "over-payment relief claims gov.uk"
  • edited 19 September 2019 at 3:25PM
    AndyCFAndyCF Forumite
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    edited 19 September 2019 at 3:25PM
    You can't complete an R40 if you filed a Self Assessment tax return for the tax year in question.

    It is one or the other not both.

    Thank you. I'm not really up on this :( I was only actually self employed for six months or so anyway with a low income from that work but ended up being told to complete returns for subsequent years etc.

    Oh it was all declared as in the total. I have some of my original paperwork where I 'totalled' it all up. :)

    My total 'income' including the PPI 'total' was below the tax limit for the year it seems. By the looks of the .pdf it appears they credited me £1.25 or I sent them that figure. Either way that way the 'sum' at the end, if that makes sense. I cannot see any errors on the submission.
    If you failed to declare your PPI related interest on the Self Assessment return then you will need to file an amended Self Assessment return for that year. Assuming it is 2017:18 or 2018:19.

    If it's an earlier tax year than that then Google "over-payment relief claims gov.uk"

    I will do that thank you. :) It does look more complicated than that form though.

    By the looks of it I can send a letter which is better for me as I can set out the position clearly. I was able to find the original bank PPI refund letter as well as a PBA one too (I did declare that too)

    The sums involved are relatively small though, I think any refund (at a wild guess) would certainly be in two figures.

    Appreciate the reply. :)

    EDIT... Only tricky part appears to be working out the sum itself as the PBA one is not clear from the letter, the PPI one clearly states it as a neat list - but the PBA is a complicated listing of figures that make little sense to me aside from the total. Will get some advice on this before sending a letter off next week.
  • PeriPeri Forumite
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    Hi. Iam in the process of claiming back on PPI interest. The PPI payout was a joint claim for my husband and I do i need to request a refund for both of us. At the time of the payout i was under the tax threshold and my husband would have been paying basic rate.
    Thanks in advance
  • Just read article about claiming back tax paid on PPI settlements. Is there a form that I should have from the HMRC in order to start a claim?
  • edited 20 September 2019 at 9:57AM
    AndyCFAndyCF Forumite
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    edited 20 September 2019 at 9:57AM
    luziers wrote: »
    Just read article about claiming back tax paid on PPI settlements. Is there a form that I should have from the HMRC in order to start a claim?

    Yes. Likely you want the R40 form (unless you did self-assessment) for s/e you I think have to write a letter, I plan on that anyway. Once I've figured it out as in my case I need to calc it manually it seems, hmm. No matter. Anyway onto your question again:

    R40 here > https://www.gov.uk/government/publications/income-tax-claim-for-repayment-of-tax-deducted-from-savings-and-investments-r40 , download / print out / fill in / send off etc.

    I could not find a 'fill in online' version. Pretty sure there is a way of doing it online via personal tax but its going to be easier if you don't have an online account to just print/send the form off I suspect.

    If you go here > https://blog.moneysavingexpert.com/2019/04/martin-lewis--had-a-ppi-payout---if-so-you-can-reclaim-the-tax-o/

    Scroll down to the "How to claim the tax back" section. Although the form does look erm painful, if you read that section you'll likely realise there is not "that much" to actually fill in. This is similar to most large forms really, once you actually stop and look carefully you usually find that unless you are unlucky you do not have to do that much. :)

    See my note about if you have submitted a self-assessment one already though. I was about to do the form until a kind member pointed out that I could not use it.
  • Hello, I received a ppi in May 2019, do I have to wait until the end of the tax year to claim ppi interest?
  • Dear Martin,
    I read about tax reclaim for PPI payouts and filled out the form to claim £1900 on my ppi payout as a 20% tax payer for the year 2016/17. Today instead of getting a welcome cheque i got a tax demand for £1500 to pay by November as they said the interest on my PPi took me to the 40% tax bracket. I am distraught. What can I do?
  • zx81zx81 Forumite
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    Paying the tax you owe would be the obvious next step.

    HMRC don't tend to be open to negotiation
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