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

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  • sharkusmarkus
    sharkusmarkus Posts: 3 Newbie
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    I've literally just got my paperwork indicating I have a payout coming.

    I noticed the 20% tax deducted, and was wondering if I could claim it back, hence looking at this article / forum post.

    The question I have is that I've been non-resident in the UK for 16 years, I've been living and working in Canada, so would I just use Form R43, and if so, which section(s) would be relevant?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
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    All sections relevant to you would the ones you need to complete.
  • sallyport3
    sallyport3 Posts: 1 Newbie
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    Hi Martin and team. I read your information about tax payed on PPI payouts. I filled in the form R40 as you suggested and added the same additional comment that you suggested. I am no spring chicken and although I can find my way around a computer, I am no genius (nor do I know much about income tax). I found it pretty easy and it took about half an hour. That was just short of 3 weeks ago and today I have received a cheque for £590.10. Thank you very much.
  • sharkusmarkus
    sharkusmarkus Posts: 3 Newbie
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    Dazed_and_confused wrote: »
    All sections relevant to you would the ones you need to complete.

    So form 43 then? There's no online version? I'll download and have a look around and see if I can figure it out. Thanks :)
  • jeffkey1
    jeffkey1 Posts: 35 Forumite
    First Anniversary First Post Combo Breaker
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    Hi Martin,
    I have only had one interest free loan on a sofa in the last ten years. I read the small print and declined ppi. So can I claim? A call from a ppi chaser said claim for anything, the banks never check !!! This is fraud. I realise people can be misled or don't read the small print but enough already. Let it rest.
    P.S I don't use Facebook either so stop prompting me to log in with it.
  • sgr1234
    sgr1234 Posts: 26 Forumite
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    My husband and I have had 7 payouts this month from joint loans. If we want to claim the tax back on the statutory interest, do we have to wait until the end of the tax year to do so as we have to declare our total income and tax paid for that year? We have no savings whatsoever so presume we will get the full 20% tax back. His annual income is around £19000 and mine is £36000.
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
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    We have no savings whatsoever so presume we will get the full 20% tax back. His annual income is around £19000 and mine is £36000.

    Without knowing how much interest (the gross amount before tax) you each received its impossible to say however if the "annual income" is in respect of a job or business you run then all your interest will be liable to tax but the first £1,000 would be taxed at 0%.

    So maximum refund (assuming you had enough taxed interest) would be £200. Each.
  • sgr1234
    sgr1234 Posts: 26 Forumite
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    Thanks D&C. Do we have to wait until the year end before trying to claim the tax back?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
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    I think so yes. If you are employed and don't already file Self Assessment returns then you can use the R40 form Martin Lewis refers to in his article.

    If you file Self Assessment returns you just include the interest on that as normal.
  • javajim
    javajim Posts: 146 Forumite
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    Thanks Martin
    I didn't think I had paid PPI but thought why not give it a try. So I used Martins "Resolver"
    I applied at two banks.
    At one there was no payback, where as much to my surprise the second has contacted me saying I had a refund due to me of just over £1000!!
    Well pleased, thanks
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