Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it
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Good Afternoon Martin, I was successful in getting back my PPI from Barclays last year around which had 20% interest tax deducted from my Statutory compensation £1,714.64 = £342.92. As i usually earn around 26,000 a year would it be worth filling in the R40 form ?
Many thanks
Jonathan0 -
In 2018, I was luckily enough to receive a PPI refund, of this, I paid 20% tax on the Statutory Compensation element, this was £511.
£2555 X 20% = £511
Taking into account the Personal Savings Allowance. could anyone one advise on the Tax I should of paid and a simply calculation on how to work it out.
many thanks
It depends which tax year ("2018" doesn't quite narrow it down enough) you received the interest and how much other income you received.
It is entirely possible you aren't able to make use of the "Personal Savings Allowance" and get it all back. Or you could potentially use the Personal Savings Allowance and get none back.
A lot depends on your other taxable income and how much other interest you received in the same tax year.0 -
Hi Martin as I got my ppi paid in Feb 2014 does this mean I can’t clsim back the tax?
Thanks Lisa
Yes. But there may well have been nothing due back in either the 2013:14 or 2014:15 tax year anyway.0 -
Hello, I started the process of online applying for TAX PPI reclaim, its looks like it's only going back as far as 2015 ? is that correct?
My PPI was paid out well before 2014 for years 1996 to 2000 roughly.
Cam
There is no "2015" tax year.
You are too late now though for 2014:15 but you try and claim something back for 2015:16. But you are probably unlikely to be due a refund for that particular tax year as the rules were different then.0 -
Hi Martin, I am a little confused as I had a PPI claim payout from Barclays in August 2016, The calculation states refund of PPI £468.64, a refund of interest charged on premiums paid £183.91 and statutory compensation interest. £963.84... it then includes a deduction from statutory compensation interest for income tax 20% £192.76, does this mean I can claim the deduction part back?
You may be able to claim (for the 2016:17 tax year) but as you have given no indication of what your taxable income was in that year and how much other interest you received it is impossible to know for certain.0 -
Good Afternoon Martin, I was successful in getting back my PPI from Barclays last year around which had 20% interest tax deducted from my Statutory compensation £1,714.64 = £342.92. As i usually earn around 26,000 a year would it be worth filling in the R40 form ?
Many thanks
Jonathan
Probably yes. It will depend on what other taxable interest you received in the same tax year but you may be due a maximum of about £198 back. The more other interest you received the smaller the refund will be.0 -
Hi Martin
Would the tax refund also apply to package bank account refunds?0 -
My husband and I have had two PPI payouts: one in Sept 2017 and one in Jan 2018. I gave some of my tax allowance to my husband so it increases his allowance (his tax code 2017-2018 was 1309M) He earns just over £19,000. Both the PPI payouts had the standard 20% tax rate deducted.
As my husband has an increased allowance can he claim back any tax on the PPI payments?
Referring to a reply above, what is "taxable interest" and how do we find out about it?
Many thanks0 -
My husband and I have had two PPI payouts: one in Sept 2017 and one in Jan 2018. I gave some of my tax allowance to my husband so it increases his allowance (his tax code 2017-2018 was 1309M) He earns just over £19,000. Both the PPI payouts had the standard 20% tax rate deducted.
As my husband has an increased allowance can he claim back any tax on the PPI payments?
Referring to a reply above, what is "taxable interest" and how do we find out about it?
Many thanks
Marriage Allowance does not increase your husband's Personal Allowance. It entitles him to a fixed amount off his tax bill (£250 in 2019:20). HMRC increase his tax code number to make sure he gets the benefit during the year but he doesn't get a bigger Personal Allowance.
Your husband can get upto £200 back but any other taxable interest he received in that tax year may reduce any refund due.
You however can almost certainly make use of either more of your unused(?) Personal Allowance or the savings starter rate of tax and get all the tax you paid on the PPI back.
I'm assuming the PPI interest is hundreds or low thousands of pounds.
Taxable interest is pretty much all interest except that paid on an ISA, or some National Savings and Investments (NS&I) accounts.0 -
Thank you for your reply "Dazed and confused" and for clarifying the Marriage Allowance thing!
I'm also intrigued by your reply - One of the loans we had was in joint names so where would we stand with trying to claim the tax back - could I make a single claim?
Unfortunately their breakdown doesn't say how much income tax was deducted but I'm going to ring and ask them for the amount. The ppi refund we received was £4,850.88 : "Premiums paid plus interest £3,083.57, 8% statutory interest £1,767.31"0
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