Martin Lewis: Had a PPI payout? If so, you can reclaim the tax on it
Options
Comments
-
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
Gaz0 -
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?0
-
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:beer:0
-
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!0 -
Hi all. Just want to confirm that I can claim tax back on PPI. Just received a payment from Capital One and was taxed around £96. I am a full time carer receiving carers allowance, income support and child tax credits. Have been for 12 years. Currently awaiting information from a few companies to see if I had PPI and will try reclaiming if this is the case. I assume that I should wait and claim back all the tax deducted in one hit? Will this affect any benefits in any way?
Many thanks!0 -
Hi all,
I had a PPI payout in August 2017 which I forgot to mention on my self-assessment form (I rent out a property). I now see that I paid 700 quid tax on the 7k payment. Even with the 7k I would not have reached the 11.5k tax allowance, unless that was different in April 18. Can I reclaim it now using the form you mention? Will I get into trouble for not mentioning it on the form?
Thank you0 -
Hi all,
I had a PPI payout in August 2017 which I forgot to mention on my self-assessment form (I rent out a property). I now see that I paid 700 quid tax on the 7k payment. Even with the 7k I would not have reached the 11.5k tax allowance, unless that was different in April 18. Can I reclaim it now using the form you mention? Will I get into trouble for not mentioning it on the form?
Thank you
You cannot complete an R40 and a Self Assessment return for the same tax year.
You have plenty of time to amend your Self Assessment return to correct any errors or omissions. You can probably do it online.
However PPI refunds themselves aren't usually taxed, it's just the interest element of any payout.
So you need to check your PPI paperwork to see what the taxable amount was (possibly £3.5k?) and then file an amendment to your Self Assessment return to include the income you have omitted. And the £700 tax.0 -
Hi Dazed,
Thank you for your reply. However, the self assessment I´m referring to was for 17-18, submitted in Jan 19 and has been processed.. And the tax amount paid was "income tax deduction. This is the value of 20% income tax deducted from the statutory compensation. This value is down to the nearest pennywithin your fnal redress calculation".
So what now? Any advice?
thank you.0 -
I know it was for 2017:18, you said the income which was taxed was paid in August 2017.
Have a look at the gov.uk guidance. You have until 31 January 2020 to amend your 2017:18 return.
https://www.gov.uk/self-assessment-tax-returns/corrections0 -
Oh right, I didn´t know you could amend a submitted tax return. Thank you for that - very helpful advice. Off to have a look now.0
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards