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  • FIRST POST
    • Docwit
    • By Docwit 13th Oct 19, 8:54 PM
    • 2Posts
    • 0Thanks
    Docwit
    PPi tax reclaim resulted in big tax bill
    • #1
    • 13th Oct 19, 8:54 PM
    PPi tax reclaim resulted in big tax bill 13th Oct 19 at 8:54 PM
    I got a big PPi payout plus £9999 interest as a 20% tax payer. I got taxed £1900 taken off so claimed for the tax back afer reading Martin€‘S money. I got a shock on Friday as instead of an expected cheque for £1900 I got a tax bill for an additional £1500 to be paid within 2 weeks. I am gutted. Apparently the interest took me over the tax threshold. I had no Idea. Is there anything I can do please.
Page 1
    • Moneyineptitude
    • By Moneyineptitude 13th Oct 19, 9:04 PM
    • 24,913 Posts
    • 14,426 Thanks
    Moneyineptitude
    • #2
    • 13th Oct 19, 9:04 PM
    • #2
    • 13th Oct 19, 9:04 PM
    Is there anything I can do please.
    Originally posted by Docwit
    Pay the additional tax from your "big payout" before you spend it?
    • antrobus
    • By antrobus 13th Oct 19, 9:07 PM
    • 16,900 Posts
    • 23,892 Thanks
    antrobus
    • #3
    • 13th Oct 19, 9:07 PM
    • #3
    • 13th Oct 19, 9:07 PM
    I got a big PPi payout plus £9999 interest as a 20% tax payer. I got taxed £1900 taken off so claimed for the tax back afer reading Martin€‘S money. I got a shock on Friday as instead of an expected cheque for £1900 I got a tax bill for an additional £1500 to be paid within 2 weeks. I am gutted. Apparently the interest took me over the tax threshold. I had no Idea. Is there anything I can do please.
    Originally posted by Docwit
    As a '20% tax payer', you would not have been due a refund anyway.

    The only thing you can do is pay the £1,500.
    • BoGoF
    • By BoGoF 13th Oct 19, 9:42 PM
    • 5,471 Posts
    • 5,403 Thanks
    BoGoF
    • #4
    • 13th Oct 19, 9:42 PM
    • #4
    • 13th Oct 19, 9:42 PM
    As a '20% tax payer', you would not have been due a refund anyway.

    The only thing you can do is pay the £1,500.
    Originally posted by antrobus
    Yes they would if the interest kept them in the 20% rate band they would have still been entitled to the £1000 nil rate savings band. So around £200 if a basic rate taxpayer including interest.

    I assume the additional £9999 income tipped them into the higher rate bracket.
    Last edited by BoGoF; 13-10-2019 at 9:58 PM.
    • BoGoF
    • By BoGoF 13th Oct 19, 10:01 PM
    • 5,471 Posts
    • 5,403 Thanks
    BoGoF
    • #5
    • 13th Oct 19, 10:01 PM
    • #5
    • 13th Oct 19, 10:01 PM
    And o/p has confirmed it took them into 40% tax bracket on their other thread.

    It's income, it's taxable (or some of it at) at 40%, you only paid 20% so you need to pay what's owing. There is nothing else you can do.
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