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  • 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 5
    • lisalis
    • By lisalis 26th Aug 19, 8:34 PM
    • 6 Posts
    • 2 Thanks
    lisalis
    Oh right, I didnīt know you could amend a submitted tax return. Thank you for that - very helpful advice. Off to have a look now.
    • Badger197
    • By Badger197 4th Sep 19, 7:41 PM
    • 4 Posts
    • 1 Thanks
    Badger197
    Hi I have had a coupe of ppi back i filled the R40 form backon line had a reply from the HMRC wanting to know my bank account numbers and sort code for each bank that i held what is the case with this any help would be appreciated as would like to get the tax back .went through the claims guys .Gwyn
    • Dazed and confused
    • By Dazed and confused 4th Sep 19, 8:15 PM
    • 5,476 Posts
    • 2,916 Thanks
    Dazed and confused
    Was the PPI related interest the only interest you received in that tax year or did you receive normal interest from banks/building societies?

    And what tax year did you complete the R40 for?
    • Badger197
    • By Badger197 4th Sep 19, 8:22 PM
    • 4 Posts
    • 1 Thanks
    Badger197
    Hi
    Hi Dazed I applied on the R40 form for any interest on the PPI i recieved but i .m sure the HMRC thinks its for any interest on my bank account from 2017-2018 Gwyn
    • Dazed and confused
    • By Dazed and confused 4th Sep 19, 8:27 PM
    • 5,476 Posts
    • 2,916 Thanks
    Dazed and confused
    An R40 is like a simple tax return. You have to declare all taxable income for the year in question. You can't just put the PPI interest down and expect a refund.

    Did you declare any other interest for that tax year?
    • Repeat3Times
    • By Repeat3Times 5th Sep 19, 3:15 AM
    • 64 Posts
    • 19 Thanks
    Repeat3Times
    My mum claimed successfully and was repaid a few weeks ago. As this falls under the 2019-20 tax year, and she'll be earning other interest on savings until April, will it be necessary to wait until then before submitting an R40? Is there any potential disadvantage to waiting?
    • doc7576
    • By doc7576 9th Sep 19, 7:38 PM
    • 4 Posts
    • 0 Thanks
    doc7576
    Hi, looking for some advice for my Dad who has just had a decent PPI payout but not sure if he can claim any of the tax back,
    He is currently working with an income circa £1000 gross a month and with a state pension. Tax code is 328L due to pension.
    PPI -

    Gross Total £16,711.01
    Gross interest £9,497.09
    Tax £1,899.41
    No savings
    Based on the above, would he be likely to get any tax back? Cheers
    • Dazed and confused
    • By Dazed and confused 9th Sep 19, 8:51 PM
    • 5,476 Posts
    • 2,916 Thanks
    Dazed and confused
    Yes.

    You don't day what his State Pension is but using an educated guess of £9,215 and assuming he has no other income then his interest would be taxed,

    £1,000 x 0% (savings nil rate) = £0.00
    £8,497 x 20% (savings basic rate) = £1699.40

    Tax already paid = £1899.41

    Tax overpaid = £200.01

    In reality he would probably get a pound or two less as he probably owes some on his employment and pension income (usually ignored but will be taken into account in any calculation HMRC do).
    Last edited by Dazed and confused; 09-09-2019 at 9:22 PM.
    • Andy67J
    • By Andy67J 11th Sep 19, 3:51 PM
    • 1 Posts
    • 0 Thanks
    Andy67J
    Joint PPI Claim....
    Hi Martin,


    We made a claim for Mortgage Payment Protection Insurance incorrectly sold to us and were paid out on it and the interest element was in excess of £3k
    I am a higher rate tax payer and my wife is a basic rate tax payer.
    As such, is she able to complete the R40 in her name only and benefit from the significantly greater allowance and lower tax she enjoys?
    Thanks for your help - great website!
    Cheers
    Andy
    • Dazed and confused
    • By Dazed and confused 11th Sep 19, 8:16 PM
    • 5,476 Posts
    • 2,916 Thanks
    Dazed and confused
    We made a claim
    If that is correct and the interest was paid to you jointly then half is your income (and tax) and half your wife's.

    An R40 is like a simplified tax return and is for an individual to use, there is no situation where it would be completed in joint names.

    Without full details it's impossible to say but if the interest was £3,000 (£1,500 each) it is possible that you would owe £100 and your wife be due a refund of £200-£300 (her refund will depend on how much basic rate tax she was liable to pay, some basic rate tax payers can receive £5,999 interest before any tax is actually payable.
    • Emptybottleofjd
    • By Emptybottleofjd 18th Sep 19, 12:38 PM
    • 1 Posts
    • 0 Thanks
    Emptybottleofjd
    Iíve just done the online form and it was suspiciously easy. I thought thereíd be more questions. My PPI was paid to me in August 2019, so could only give part year tax/earnings, as far as August. Might this be a problem? Iíve had no other income, savings or otherwise. Will I have to wait until end of tax year? Burning question for me.
    • AndyCF
    • By AndyCF 18th Sep 19, 9:46 PM
    • 721 Posts
    • 2,342 Thanks
    AndyCF
    Sorry if this is a silly question

    I had two small PPI payouts both in the same (tax) year, they were actually paid if I recall correctly about two weeks apart. I don't need a separate form for each do I ? As they are in the same 'year' its the total yes ?

    I am not sure about the P45/P60 code either as they had me down as self-employed (and demanded a return) even though I was not working at the time nor claiming much if at all that year, or if I was it was for a couple of months (all declared) but unsure on 'code' ? I guess finding the 'code' will be on their site unless there's an easy way to look it up, I could not see anything from a cursory search though.

    Thanks for any assistance on these two questions, although I think the first one I've self answered.
    Last edited by AndyCF; 18-09-2019 at 9:50 PM.
    • AndyCF
    • By AndyCF 19th Sep 19, 11:13 AM
    • 721 Posts
    • 2,342 Thanks
    AndyCF
    Slightly confused Any help appreciated. I think I've figured most of it out, although having bits of money from various sources (but all low figures) and I think I was self employed for a month or two of it as well adds to the mess. At least I was not 'employed' so there's no "external employer" stuff to attend to I suppose.

    3.1 Net interest paid by banks, building societies etc, purchased
    life annuities and PPI payments – after tax taken off
    I'm assuming this is the -total- interest paid to me in that tax year yes ? Including the (pence, yes really) paid on bank accounts and the PPI ? , just the 'total interest paid this year'

    3.2 Tax taken off
    So this would be as it says ? The tax HMRC said was 'due' that year ? So when I filled in the self assessment form and it came back saying "you owe £x" , this is that ?

    3.3 Gross amount – the amount before tax taken off
    Amount of what ? You mean the total interest that would of been paid if there was say no tax due on it ? That cannot be correct as that is the same as the first one! This must mean the amount I earned/received in total in that tax year then yes ?
    • Dazed and confused
    • By Dazed and confused 19th Sep 19, 12:50 PM
    • 5,476 Posts
    • 2,916 Thanks
    Dazed and confused
    You can't complete an R40 if you filed a Self Assessment tax return for the tax year in question.

    It is one or the other not both.

    If you failed to declare your PPI related interest on the Self Assessment return then you will need to file an amended Self Assessment return for that year. Assuming it is 2017:18 or 2018:19.

    If it's an earlier tax year than that then Google "over-payment relief claims gov.uk"
    • AndyCF
    • By AndyCF 19th Sep 19, 3:22 PM
    • 721 Posts
    • 2,342 Thanks
    AndyCF
    You can't complete an R40 if you filed a Self Assessment tax return for the tax year in question.

    It is one or the other not both.
    Originally posted by Dazed and confused
    Thank you. I'm not really up on this I was only actually self employed for six months or so anyway with a low income from that work but ended up being told to complete returns for subsequent years etc.

    Oh it was all declared as in the total. I have some of my original paperwork where I 'totalled' it all up.

    My total 'income' including the PPI 'total' was below the tax limit for the year it seems. By the looks of the .pdf it appears they credited me £1.25 or I sent them that figure. Either way that way the 'sum' at the end, if that makes sense. I cannot see any errors on the submission.

    If you failed to declare your PPI related interest on the Self Assessment return then you will need to file an amended Self Assessment return for that year. Assuming it is 2017:18 or 2018:19.

    If it's an earlier tax year than that then Google "over-payment relief claims gov.uk"
    Originally posted by Dazed and confused
    I will do that thank you. It does look more complicated than that form though.

    By the looks of it I can send a letter which is better for me as I can set out the position clearly. I was able to find the original bank PPI refund letter as well as a PBA one too (I did declare that too)

    The sums involved are relatively small though, I think any refund (at a wild guess) would certainly be in two figures.

    Appreciate the reply.

    EDIT... Only tricky part appears to be working out the sum itself as the PBA one is not clear from the letter, the PPI one clearly states it as a neat list - but the PBA is a complicated listing of figures that make little sense to me aside from the total. Will get some advice on this before sending a letter off next week.
    Last edited by AndyCF; 19-09-2019 at 3:25 PM.
    • Peri
    • By Peri 19th Sep 19, 3:51 PM
    • 2 Posts
    • 0 Thanks
    Peri
    Hi. Iam in the process of claiming back on PPI interest. The PPI payout was a joint claim for my husband and I do i need to request a refund for both of us. At the time of the payout i was under the tax threshold and my husband would have been paying basic rate.
    Thanks in advance
    • luziers
    • By luziers 19th Sep 19, 9:09 PM
    • 1 Posts
    • 0 Thanks
    luziers
    How do I claim tax back from PPI Settlements
    Just read article about claiming back tax paid on PPI settlements. Is there a form that I should have from the HMRC in order to start a claim?
    • AndyCF
    • By AndyCF 20th Sep 19, 9:54 AM
    • 721 Posts
    • 2,342 Thanks
    AndyCF
    Just read article about claiming back tax paid on PPI settlements. Is there a form that I should have from the HMRC in order to start a claim?
    Originally posted by luziers
    Yes. Likely you want the R40 form (unless you did self-assessment) for s/e you I think have to write a letter, I plan on that anyway. Once I've figured it out as in my case I need to calc it manually it seems, hmm. No matter. Anyway onto your question again:

    R40 here > https://www.gov.uk/government/publications/income-tax-claim-for-repayment-of-tax-deducted-from-savings-and-investments-r40 , download / print out / fill in / send off etc.

    I could not find a 'fill in online' version. Pretty sure there is a way of doing it online via personal tax but its going to be easier if you don't have an online account to just print/send the form off I suspect.

    If you go here > https://blog.moneysavingexpert.com/2019/04/martin-lewis--had-a-ppi-payout---if-so-you-can-reclaim-the-tax-o/

    Scroll down to the "How to claim the tax back" section. Although the form does look erm painful, if you read that section you'll likely realise there is not "that much" to actually fill in. This is similar to most large forms really, once you actually stop and look carefully you usually find that unless you are unlucky you do not have to do that much.

    See my note about if you have submitted a self-assessment one already though. I was about to do the form until a kind member pointed out that I could not use it.
    Last edited by AndyCF; 20-09-2019 at 9:57 AM.
    • Lisad29
    • By Lisad29 4th Oct 19, 11:55 AM
    • 1 Posts
    • 0 Thanks
    Lisad29
    Ppi interest
    Hello, I received a ppi in May 2019, do I have to wait until the end of the tax year to claim ppi interest?
    • Docwit
    • By Docwit 11th Oct 19, 6:32 PM
    • 2 Posts
    • 0 Thanks
    Docwit
    Dear Martin,
    I read about tax reclaim for PPI payouts and filled out the form to claim £1900 on my ppi payout as a 20% tax payer for the year 2016/17. Today instead of getting a welcome cheque i got a tax demand for £1500 to pay by November as they said the interest on my PPi took me to the 40% tax bracket. I am distraught. What can I do?
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