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  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 8th Apr 19, 8:22 AM
    • 120Posts
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    MSE Eesha
    Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it
    • #1
    • 8th Apr 19, 8:22 AM
    Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it 8th Apr 19 at 8:22 AM
    This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.





    Please click 'post reply' to discuss below.
Page 2
    • LincsCat
    • By LincsCat 12th Apr 19, 7:36 AM
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    LincsCat
    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"
    • Dazed and confused
    • By Dazed and confused 12th Apr 19, 7:54 AM
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    Dazed and confused
    Do you mean £4850.88 was paid into your account?

    Or was it £4850.88 less the tax (possibly £353.46)

    Joint would normally be half each.

    As the interest was received in 2017:18 then your husband can still have £1,000 interest taxed at 0% so unless he has a fair bit of other taxable interest then he may well be due most if not all of his share of the tax back. But this does depend on the other interest he received.
    Last edited by Dazed and confused; 12-04-2019 at 7:57 AM.
    • LincsCat
    • By LincsCat 12th Apr 19, 10:22 AM
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    LincsCat
    We had £4850.88 paid as a refund into our bank account. Once I find out how much HSBC deducted as the standard 20% tax, I presume both of us should fill in the R40 tax form for half each?

    Update: I've spoken to HSBC and they said the 20% deduction was £441.82
    Last edited by LincsCat; 12-04-2019 at 11:06 AM. Reason: update
    • Dazed and confused
    • By Dazed and confused 12th Apr 19, 4:57 PM
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    Dazed and confused
    That figure makes sense.

    Gross interest of £2209 less tax £441.82 is the net interest of £1767.

    Yes, an R40 is the right form. Remember it is basically a tax return (similar to Self Assessment) so you need to include all your taxable income for the tax year, wages (as per your P60's), PPI interest and any other taxable income.
    • LincsCat
    • By LincsCat 13th Apr 19, 7:50 AM
    • 6 Posts
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    LincsCat
    Thank you so much for all your help - I've never looked at tax before and it's rather confusing for me!
    • Jojorushton71
    • By Jojorushton71 16th Apr 19, 8:26 AM
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    Jojorushton71
    Hi. I received a payment into my bank on Thursday last week (11th April) and on the letter it states I have been deducted £243 tax. Am I able to claim this back yet or do I have to wait until next year as it was paid into my account after 6th April, cut off for doing last year's tax return I believe.
    • LBirch
    • By LBirch 18th Apr 19, 1:53 PM
    • 2 Posts
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    LBirch
    Help!
    Hi Martin I received a huge payout from M&S of £5666 in February of this year, also £1700 from NatWest in May & August last year. I am so confused as I also earnt paid work totalling £3066 in the year 2018/19 (rest of the year unemployed). The form asks for taxable work to be entered but of course I didn't pay tax as it was well below my allowable limit. Do I enter all of the taxable income & the PPI as one figure or separately? Also how do I know what the interest was on the PPI (in Boxes 3 & 3.1)? I haven't had any details on tax for the payouts as they were paid directly into my Bank A/C. Thanks Lisa
    • Dazed and confused
    • By Dazed and confused 18th Apr 19, 7:10 PM
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    Dazed and confused
    Do I enter all of the taxable income & the PPI as one figure or separately? Also how do I know what the interest was on the PPI (in Boxes 3 & 3.1)? I haven't had any details on tax for the payouts as they were paid directly into my Bank A/C.
    Yes you have to enter any income from a job. Just because no tax was deducted at the time doesn't mean it isn't taxable income.

    You do not enter PPI refunds on an R40. You have to find out the interest element and the tax deducted from that. Those are the amounts you need for the R40. If you enter the PPI payout in full your refund will be calculated using that figure which will mean you might get less than you are due back as a tax refund.

    Each type of income has to go in the relevant section. Interest in the interest bit and wages in the earnings/employment bit.
    • Moneyineptitude
    • By Moneyineptitude 18th Apr 19, 7:21 PM
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    Moneyineptitude
    I haven't had any details on tax for the payouts as they were paid directly into my Bank A/C.
    Originally posted by LBirch
    You should have also received a letter upholding your complaint and providing a breakdown of the refund, interest and tax.

    If you no longer have this, ask the Bank to provide another breakdown..
    • LBirch
    • By LBirch 25th Apr 19, 11:17 AM
    • 2 Posts
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    LBirch
    More Confused!
    Hi Martin you responded to my query but sorry I'm more confused then ever!

    You say "you cannot claim PPI tax on form R40" but that's the form you have linked to complete?

    Also there are not "box 3.0, box 3.1 etc" on the R40. All it says on the form is "Total pay from all employments, before tax is taken off (gross pay) from P60/P45" then the next box down says "Tax taken off the total pay from all employments" that's it.

    Help, help! thank you
    Lisa
    • Dazed and confused
    • By Dazed and confused 25th Apr 19, 5:07 PM
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    Dazed and confused
    HMRC are not interested in your total PPI payout.

    It is the interest (and tax deducted from that) which matters for tax purposes.

    You might be better off using the print and post version of the R40.

    The R40 is like a Self Assessment tax return. You have to declare any taxable income for the year concerned. For example there will be sections for employment income and pensions as well as interest. You have to declare the income you received from every taxable source and any tax deducted. Then HMRC can calculate if any refund is due. If a section doesn't apply i.e. you had no pension income them leave it blank.

    You fill in an R40 for each tax year you are claiming for. For most people it will be one form but some posting on here have received PPI interest in different tax years so more than one form is needed.
    • EP456
    • By EP456 28th Apr 19, 1:07 PM
    • 12 Posts
    • 9 Thanks
    EP456
    Help with R40
    Box 3 is where you put the various details of the interest earned (ie, the statutory interest on PPI and interest on other savings

    Is there a quick way to calculate “interest on other savings” or do I need to trawl through a year of bank account statements?

    The R40 form also states that in the case of joint accounts, only “enter your share of interest received”

    I am a basic rate tax payer and my husband is higher rate. Do I just split any interest 50/50?

    Thank you
    Last edited by EP456; 28-04-2019 at 1:12 PM. Reason: Additional info
    • Dazed and confused
    • By Dazed and confused 28th Apr 19, 2:17 PM
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    Dazed and confused
    Is there a quick way to calculate “interest on other savings” or do I need to trawl through a year of bank account statements?
    Your bank may have sent you an annual statement showing the interest.


    The R40 form also states that in the case of joint accounts, only “enter your share of interest received”

    I am a basic rate tax payer and my husband is higher rate. Do I just split any interest 50/50?
    Usually yes. Your tax rates are irrelevant for this.
    • Moneyineptitude
    • By Moneyineptitude 28th Apr 19, 9:32 PM
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    Moneyineptitude
    Hi Martin you responded to my query
    Originally posted by LBirch
    "Martin" hasn't replied to a forum post for years.
    Martin Lewis long since sold this site to Money Supermarket for £millions !
    • Baatjes
    • By Baatjes 29th Apr 19, 8:42 AM
    • 1 Posts
    • 0 Thanks
    Baatjes
    Refund of tax received
    I submitted the R40 refund of tax form online on the 11th April and last week it advised processed and reply sent. I didn't receive anything so rung HMRC today and they advise that a cheque for £198.96 is in it's way to me. Thank you MSE for letting us know about this as I wouldn't have known to claim it.
    • Bunney225
    • By Bunney225 30th Apr 19, 7:55 AM
    • 4 Posts
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    Bunney225
    Hi I successfully claimed back PPI for my late parents and of course had to pay tax. I actually spoke to HMRC at the time and they said this was correct even though both parties had passed. Do you think I can claim this tax back?
    • Giddychels
    • By Giddychels 30th Apr 19, 4:17 PM
    • 1 Posts
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    Giddychels
    I have received a couple of ppi refunds but I donít have the paperwork now so I donít know how much the tax was. I only have the net figure Iíve found from old bank statements. Can I still complete the R40
    • xssc32x
    • By xssc32x 1st May 19, 9:05 AM
    • 48 Posts
    • 3 Thanks
    xssc32x
    Hi
    Hope someone can help regarding claiming tax back on a successful PPI claim back in 2016 via R40 form. The following successful claim is outlined below
    Total refund was £6423.75
    Gross interest at FOS rate £1920.25
    Less tax 20% £384.05
    Stay Interest at FOS rate £0
    Net Interest £1536.20
    Total offer £7959.95
    I am a basic tax payer at 20% and have hadnít any interest on savings am I eligible to claim based on above info? Also what figures do I need to enter on the R40 form for the UK interest section?
    Any help appreciated.

    Cheer
    Si
    • Gennie Mountney
    • By Gennie Mountney 1st May 19, 3:21 PM
    • 1 Posts
    • 0 Thanks
    Gennie Mountney
    PPI tax reclaim
    Hi Martin, I got a PPI payment last April from Santander for £4400. I have put in a claim recently for a tax reimbursement. The interest was £568 and iíve Just received a cheque for £10.25 - does this sound right. They havenít sent the breakdown yet. Thanks Gennie
    • Dazed and confused
    • By Dazed and confused 2nd May 19, 6:04 AM
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    • 2,860 Thanks
    Dazed and confused
    Hi Martin, I got a PPI payment last April from Santander for £4400. I have put in a claim recently for a tax reimbursement. The interest was £568 and i’ve Just received a cheque for £10.25 - does this sound right. They haven’t sent the breakdown yet. Thanks Gennie
    As you haven't told us what your total taxable income was or even the tax year in question it is impossible to say. May well be right. Could be wrong. You need to look at the breakdown when it comes. Usually a calculation called a P800.
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