Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 8th Apr 19, 9:22 AM
    • 121Posts
    • 29Thanks
    MSE Eesha
    Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it
    • #1
    • 8th Apr 19, 9:22 AM
    Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it 8th Apr 19 at 9:22 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 6
    • zx81
    • By zx81 13th Oct 19, 10:47 PM
    • 24,365 Posts
    • 27,164 Thanks
    zx81
    Paying the tax you owe would be the obvious next step.

    HMRC don't tend to be open to negotiation
    • Jesgra
    • By Jesgra 15th Oct 19, 6:56 PM
    • 1 Posts
    • 0 Thanks
    Jesgra
    I am self employed , When you had a large ppi repayment are you to include that on your tax return?
    Thanks
    • ChrisDavis23
    • By ChrisDavis23 19th Oct 19, 2:10 PM
    • 1 Posts
    • 0 Thanks
    ChrisDavis23
    PPI Tax reclaim
    Good afternoon, i am trying to complete my reclaim and have a question, as follows
    Some of the PPI tax paid was for joint payouts with my wife, and some individually, should I split the interest for the joint payouts 50/50 and complete a claim individually for myself and my wife?
    Thank you
    • morris8cars
    • By morris8cars 12th Nov 19, 11:03 AM
    • 10 Posts
    • 7 Thanks
    morris8cars
    PPI Tax claim - Now or in April ?
    Hi
    Just received a refund from PPI claim (Thanks Martin) and its been taxed in this year. Having read Martins write up for reclaiming, should I claim now or wait till end of this tax year when I have any other income returns (P60 etc). I can see there is a box to cross if part way through year but dont want to make it more difficult.
    Many thanks
    • martynjwood
    • By martynjwood 13th Nov 19, 6:47 PM
    • 4 Posts
    • 0 Thanks
    martynjwood
    PPI Tax reclaim
    Hi,

    Great Thread.
    I have been awarded a PPI sum. I am however very close to High rate tax. Adding the Interest figure to my salary would put me in the 40% tax bracket. At which point my Interest allowance gores down to 500. Is it worth me applying for my 20% back (~420)?

    Cheers
    • Dazed and confused
    • By Dazed and confused 13th Nov 19, 8:43 PM
    • 5,636 Posts
    • 2,991 Thanks
    Dazed and confused
    I'm not sure you fully understand how interest and tax works.

    What exactly do you mean by this?

    Is it worth me applying for my 20% back (~420)?
    • martynjwood
    • By martynjwood 14th Nov 19, 8:13 PM
    • 4 Posts
    • 0 Thanks
    martynjwood
    Hi,

    20% of the interest is ~420.
    If I was a high rate tax payer I would need to declare the interest to the Tax man and subsequently pay Tax at 40% (not the statutory 20% already added), also reducing my Tax free interest earnings amount down to 500.
    Because I am already close to the high rate threshold, if I complete the R40, the addition of the total interest (2k ish) in my PPI award to my salary income would put me in the high rate tax bracket. Therefore I would be liable for 40% tax on some and my tax free interest earnings would be reduced to 500.
    • Dazed and confused
    • By Dazed and confused 14th Nov 19, 9:04 PM
    • 5,636 Posts
    • 2,991 Thanks
    Dazed and confused
    There is no tax fee "allowance" for savings interest.

    Your 2,100 interest (plus any normal bank or building society interest received during the same tax year) would be taxed at a mix of the following rates,

    Savings nil rate (0%)
    Savings basic rate (20%)
    Savings higher rate (40%)

    How much goes in each tax band depends on what other taxable income income you have during the tax year.

    Best case scenario (assuming you have no other interest, which would be unusual for a MSE user!)

    1,000 taxed at 0%
    1,100 taxed at 20%
    Tax due 220

    Worst case sceanrio
    500 taxed at 0%
    1,600 taxed at 40%
    Tax due 640

    So you could be due a refund. Or you could have extra to pay, all depends on your other taxable income.
    • sheza
    • By sheza 27th Nov 19, 7:24 AM
    • 20 Posts
    • 13 Thanks
    sheza
    I take it you can't submit a claim during the current tax year. I received a payout last month and there was 590 tax paid on it. The R40 claim online asks for a p60 but I won't get that until April. I don't get why there is an option to claim during the current tax year given the caims are retrospective.
    • Dazed and confused
    • By Dazed and confused 27th Nov 19, 6:35 PM
    • 5,636 Posts
    • 2,991 Thanks
    Dazed and confused
    Not everyone has a job or or pension paid under PAYE.

    For most people with a job the refund will be less than 200 so not life changing.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

443Posts Today

4,024Users online

Martin's Twitter