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  • FIRST POST
    • MSE Eesha
    • By MSE Eesha 8th Apr 19, 8:22 AM
    • 119Posts
    • 29Thanks
    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 4
    • hazelplt
    • By hazelplt 14th Jun 19, 10:07 AM
    • 6 Posts
    • 0 Thanks
    hazelplt
    I really appreciate the help, as I find it difficult to understand.

    Tax year 2017/2018
    Tax code 1143L
    Total pay from all employments before tax - 21877.20
    Tax taken off pay from employments - 2087.60

    Interest awarded on PPI pay-out - 2923.61
    Income tax deducted from interest at 20% - 584.72

    I didn't have any savings, only the PPI pay-out.
    • Dazed and confused
    • By Dazed and confused 14th Jun 19, 10:18 AM
    • 5,077 Posts
    • 2,653 Thanks
    Dazed and confused
    As your tax code was not the standard 1150L 2017:18 it's not possible to be 100% certain but on the info supplied you owe about 384 tax on the PPI interest.

    And 584 was deducted so there is 200 refund due.

    You may well owe a little on your employment income due to how PAYE works and that will be taken into account in the calculation so overall you might get 197-198 back not 200.

    It might be different depending on why your tax code was 1143L but I would be very surprised, based on what you have posted, if you weren't due a refund.

    Why not complete an R40 form for 2017:18 and send it off to HMRC?

    You have done most of the leg work in your previous post.
    • hazelplt
    • By hazelplt 14th Jun 19, 11:03 AM
    • 6 Posts
    • 0 Thanks
    hazelplt
    Thank you so much for your help.

    The tax code was different due to a benefit paid to me by my employer, which I didn't get. I only noticed it this year and have got my tax code changed to 1150L.

    I already completed the HMRC online form with the above details. I received a response from them to say I had paid the correct amount of tax. Hence my confusion.

    Is there a way to challenge it? What information do I need to make a challenge?
    • Dazed and confused
    • By Dazed and confused 14th Jun 19, 11:06 AM
    • 5,077 Posts
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    Dazed and confused
    What did you enter on the R40?

    Looking at some of the other posts on here and Martin Lewis's original article some have been telling HMRC about things they don't need to.
    • hazelplt
    • By hazelplt 14th Jun 19, 11:16 AM
    • 6 Posts
    • 0 Thanks
    hazelplt
    I put the figures that I put in this post. I don't think I added anything else. I just followed the questions on the form.

    I've been back on the website, but can't see how to access the claim I made to see the info.
    • Dazed and confused
    • By Dazed and confused 14th Jun 19, 11:24 AM
    • 5,077 Posts
    • 2,653 Thanks
    Dazed and confused
    As you have actually sent them an R40 I think it might be best of you phoned and tried to discuss it with someone.

    The benefit element you mentioned might complicate it a little but even if you accept there was a benefit that year (whatever was in your code probably meant you paid about 14 extra tax) there should still be a c200 refund due.

    I would also suggest you don't mention any savings "allowance". Simply because there isn't one and it can only confuse matters.
    • hazelplt
    • By hazelplt 14th Jun 19, 11:39 AM
    • 6 Posts
    • 0 Thanks
    hazelplt
    So on what grounds should I be entitled to a refund?
    • Dazed and confused
    • By Dazed and confused 14th Jun 19, 11:45 AM
    • 5,077 Posts
    • 2,653 Thanks
    Dazed and confused
    That the tax you have to pay on the interest is 384. And you have already paid 584.

    If we assume your PAYE tax was correct then your interest would be taxed like this,

    1,000 x 0% (savings nil rate) = 0.00
    1,923 x 20% (savings basic rate) = 384.60

    Total tax due on interest = 384.60

    Total tax paid on interest is 584.72

    Tax overpaid 200.12
    • hazelplt
    • By hazelplt 14th Jun 19, 11:51 AM
    • 6 Posts
    • 0 Thanks
    hazelplt
    Thank you so much. I feel much better equipped now. :-)
    • gazzie
    • By gazzie 14th Jun 19, 1:04 PM
    • 4 Posts
    • 0 Thanks
    gazzie
    Self Assessment and PPI Tax Refund?
    Hi Martin


    I just received my PPI refund through this morning and I paid 392.23 income tax on the statutory compensation element (20% tax). I am a non tax payer and the instructions included said I should complete an Inland Revenue R40 form to get the tax refunded. However I am self employed and I complete a self assessment return online each year.


    Do I use an R40 as they suggested - or wait until I complete my online Self Assessment and claim through that somehow? I haven't done last year's (2018/19) yet as I do my return in December.



    As I just received this refund this week and therefore in 2019/20 tax year do I have to wait until I do a Self Assessment for this year (which won't be until December 2020?) or can I get this refunded earlier?



    Thanks


    Gaz
    Last edited by gazzie; 14-06-2019 at 1:05 PM. Reason: grammar
    • Dazed and confused
    • By Dazed and confused 14th Jun 19, 1:25 PM
    • 5,077 Posts
    • 2,653 Thanks
    Dazed and confused
    No, you cannot use the R40.

    You need to include the interest (and tax deducted) on your 2019:20 tax return and it will be taken into account in your 2019:20 tax calculation.

    It is your choice to file the return in December each year. You could file your 2019:20 return on 6 April 2020 if you really wanted to.
    • gazzie
    • By gazzie 14th Jun 19, 2:22 PM
    • 4 Posts
    • 0 Thanks
    gazzie
    Hi


    OK, thanks for confirming, I may well do SA early next year anyway as I'm thinking of retiring and stopping self employment, so this could be my last year.


    Thanks for your help
    Cheers



    Gaz
    • websten
    • By websten 4th Jul 19, 1:08 PM
    • 1 Posts
    • 0 Thanks
    websten
    Hi, a relative died in 2012 and her estate was worth 163,000, so well under the 325,000 inheritance tax threshold. This year after several PPI claims were upheld a further 175,000 was received in compensation. As the total received from the estate is now 338,000 is inheritance tax due on the 13,0000 albeit she died in 2012?
    • gogglebox
    • By gogglebox 5th Jul 19, 2:41 PM
    • 1 Posts
    • 0 Thanks
    gogglebox
    Tax refund
    Thanks Martin, after reading your blog on how to claim tax back after PPI refund, I did just that and have just had a tax refund of 163. No great windfall but every little helps and its better in my pocket than HMRC. Cheers
    Last edited by gogglebox; 05-07-2019 at 2:42 PM. Reason: spelling rubbish
    • EP456
    • By EP456 15th Jul 19, 7:23 PM
    • 5 Posts
    • 5 Thanks
    EP456
    Confirmation of refunds received from HMRC. One for 195.01 for which I will receive a cheque within 14 days, and one for 193.55 which I was able to claim on the HMRC site and will be in my bank account within 5 working days.

    I will now get cracking on a claim for my husband. Many thanks Martin!
    Last edited by EP456; 15-07-2019 at 7:24 PM. Reason: Spelling
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