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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 1
    • incesticde
    • By incesticde 8th Apr 19, 6:47 PM
    • 452 Posts
    • 251 Thanks
    incesticde
    • #2
    • 8th Apr 19, 6:47 PM
    Packaged bank accounts
    • #2
    • 8th Apr 19, 6:47 PM
    Thought I’d get ahead on claiming this before this guide gets included in the mse mail and the tax office gets bombarded!

    Noting the arguments used in the guide I’m surprised that package bank account claims were also not mentioned, coop gave me 8% interest on my package bank account claim and took tax off at my rate.

    Is there a reason for this I’ve missed or is it just an oversight?

    As always Martin, thank you for the cash that will be making its way to me!



    Martin Lewis: Keeping me in Apple products since 2006!
    Last edited by incesticde; 08-04-2019 at 7:00 PM.
    "I don't want to sound cold and un-caring, but I am those things so that's the way it comes out" - Bill Hicks
    • TC65
    • By TC65 8th Apr 19, 8:14 PM
    • 1 Posts
    • 0 Thanks
    TC65
    • #3
    • 8th Apr 19, 8:14 PM
    Claim PPI Tax
    • #3
    • 8th Apr 19, 8:14 PM
    Hi Martin. My wife and I received a PPI payout on which we were deducted 20% tax, around £800. HMRC have initially refused a refund even though we have not breached the £1000 threshold. They added a payout would only be around £200. Not convinced they are right but interested in your view.
    • Dazed and confused
    • By Dazed and confused 9th Apr 19, 10:21 PM
    • 5,678 Posts
    • 3,014 Thanks
    Dazed and confused
    • #4
    • 9th Apr 19, 10:21 PM
    • #4
    • 9th Apr 19, 10:21 PM
    There is no £1,000 threshold.

    You can be a basic rate taxpayer and have £5,999 interest taxed at 0%.

    Or it might be £1,000 taxed at 0%.

    The £200 figure is taking a very simplistic view. That you are able to have exactly £1,000 of the interest taxed at 0%. And all your taxable interest in the year is from a PPI payout. In that situation you have paid £200 on £1,000 of interest taxed at 0% so have overpaid £200 in tax.

    But in reality that is unlikely to happen to someone reading this website as they probably have other savings interest which hasn't been taxed which would have to be taken into account when calculating any refund due.

    If you are due a refund then HMRC will pay it to you but what the guide doesn't mention is that people filing Self Assessment returns cannot get a refund as described. They will already have declared the interest on their Self Assessment return and any tax overpaid will have formed part of their Self Assessment calculation.

    If you provide some more information about your own circumstances it might be possible to understand what the problem is
    Last edited by Dazed and confused; 09-04-2019 at 10:24 PM.
    • Ruthyss
    • By Ruthyss 10th Apr 19, 1:33 AM
    • 1 Posts
    • 0 Thanks
    Ruthyss
    • #5
    • 10th Apr 19, 1:33 AM
    • #5
    • 10th Apr 19, 1:33 AM
    Hi ,what if a company reclaimed your ppi’s and you can’t remember which year ,can they reclaim the tax for you ?
    I think I was paid out in 2016 but can’t be sure ,should I contact them about the tax owed ?
    • Moneyineptitude
    • By Moneyineptitude 10th Apr 19, 1:41 AM
    • 25,053 Posts
    • 14,518 Thanks
    Moneyineptitude
    • #6
    • 10th Apr 19, 1:41 AM
    • #6
    • 10th Apr 19, 1:41 AM
    Hi ,what if a company reclaimed your ppiís and you canít remember which year ,can they reclaim the tax for you ?
    Originally posted by Ruthyss
    I'm certain if you approach them they'll try... for their usual fee!
    • Mel271
    • By Mel271 10th Apr 19, 10:06 AM
    • 1 Posts
    • 0 Thanks
    Mel271
    • #7
    • 10th Apr 19, 10:06 AM
    PPI Tax
    • #7
    • 10th Apr 19, 10:06 AM
    Does this apply to Plevin?
    • Jordy14
    • By Jordy14 10th Apr 19, 10:54 AM
    • 1 Posts
    • 0 Thanks
    Jordy14
    • #8
    • 10th Apr 19, 10:54 AM
    Pease explain the Tax overpayment
    • #8
    • 10th Apr 19, 10:54 AM
    In 2018, I was luckily enough to receive a PPI refund, of this, I paid 20% tax on the Statutory Compensation element, this was £511.

    £2555 X 20% = £511

    Taking into account the Personal Savings Allowance. could anyone one advise on the Tax I should of paid and a simply calculation on how to work it out.

    many thanks
    • Lisa Marie thompson
    • By Lisa Marie thompson 10th Apr 19, 11:05 AM
    • 1 Posts
    • 0 Thanks
    Lisa Marie thompson
    • #9
    • 10th Apr 19, 11:05 AM
    • #9
    • 10th Apr 19, 11:05 AM
    Hi Martin as I got my ppi paid in Feb 2014 does this mean I can’t clsim back the tax?

    Thanks Lisa
    • Cameron Sutherland
    • By Cameron Sutherland 10th Apr 19, 12:45 PM
    • 1 Posts
    • 0 Thanks
    Cameron Sutherland
    Hello, I started the process of online applying for TAX PPI reclaim, its looks like it's only going back as far as 2015 ? is that correct?
    My PPI was paid out well before 2014 for years 1996 to 2000 roughly.
    Cam
    • Scubachick7510
    • By Scubachick7510 10th Apr 19, 1:45 PM
    • 1 Posts
    • 0 Thanks
    Scubachick7510
    Barclays - PPI / Tax reclaim ?
    Hi Martin, I am a little confused as I had a PPI claim payout from Barclays in August 2016, The calculation states refund of PPI £468.64, a refund of interest charged on premiums paid £183.91 and statutory compensation interest. £963.84... it then includes a deduction from statutory compensation interest for income tax 20% £192.76, does this mean I can claim the deduction part back?
    • suchfun
    • By suchfun 10th Apr 19, 3:47 PM
    • 1 Posts
    • 0 Thanks
    suchfun
    Good Afternoon Martin, I was successful in getting back my PPI from Barclays last year around which had 20% interest tax deducted from my Statutory compensation £1,714.64 = £342.92. As i usually earn around 26,000 a year would it be worth filling in the R40 form ?

    Many thanks
    Jonathan
    • Dazed and confused
    • By Dazed and confused 10th Apr 19, 5:59 PM
    • 5,678 Posts
    • 3,014 Thanks
    Dazed and confused
    In 2018, I was luckily enough to receive a PPI refund, of this, I paid 20% tax on the Statutory Compensation element, this was £511.

    £2555 X 20% = £511

    Taking into account the Personal Savings Allowance. could anyone one advise on the Tax I should of paid and a simply calculation on how to work it out.

    many thanks
    It depends which tax year ("2018" doesn't quite narrow it down enough) you received the interest and how much other income you received.

    It is entirely possible you aren't able to make use of the "Personal Savings Allowance" and get it all back. Or you could potentially use the Personal Savings Allowance and get none back.

    A lot depends on your other taxable income and how much other interest you received in the same tax year.
    • Dazed and confused
    • By Dazed and confused 10th Apr 19, 6:00 PM
    • 5,678 Posts
    • 3,014 Thanks
    Dazed and confused
    Hi Martin as I got my ppi paid in Feb 2014 does this mean I can’t clsim back the tax?

    Thanks Lisa
    Yes. But there may well have been nothing due back in either the 2013:14 or 2014:15 tax year anyway.
    • Dazed and confused
    • By Dazed and confused 10th Apr 19, 6:02 PM
    • 5,678 Posts
    • 3,014 Thanks
    Dazed and confused
    Hello, I started the process of online applying for TAX PPI reclaim, its looks like it's only going back as far as 2015 ? is that correct?
    My PPI was paid out well before 2014 for years 1996 to 2000 roughly.
    Cam
    There is no "2015" tax year.

    You are too late now though for 2014:15 but you try and claim something back for 2015:16. But you are probably unlikely to be due a refund for that particular tax year as the rules were different then.
    • Dazed and confused
    • By Dazed and confused 10th Apr 19, 6:04 PM
    • 5,678 Posts
    • 3,014 Thanks
    Dazed and confused
    Hi Martin, I am a little confused as I had a PPI claim payout from Barclays in August 2016, The calculation states refund of PPI £468.64, a refund of interest charged on premiums paid £183.91 and statutory compensation interest. £963.84... it then includes a deduction from statutory compensation interest for income tax 20% £192.76, does this mean I can claim the deduction part back?
    You may be able to claim (for the 2016:17 tax year) but as you have given no indication of what your taxable income was in that year and how much other interest you received it is impossible to know for certain.
    • Dazed and confused
    • By Dazed and confused 10th Apr 19, 6:06 PM
    • 5,678 Posts
    • 3,014 Thanks
    Dazed and confused
    Good Afternoon Martin, I was successful in getting back my PPI from Barclays last year around which had 20% interest tax deducted from my Statutory compensation £1,714.64 = £342.92. As i usually earn around 26,000 a year would it be worth filling in the R40 form ?

    Many thanks
    Jonathan
    Probably yes. It will depend on what other taxable interest you received in the same tax year but you may be due a maximum of about £198 back. The more other interest you received the smaller the refund will be.
    • HarryHawk
    • By HarryHawk 11th Apr 19, 10:43 AM
    • 1 Posts
    • 0 Thanks
    HarryHawk
    PPI Tax refund
    Hi Martin

    Would the tax refund also apply to package bank account refunds?
    • LincsCat
    • By LincsCat 11th Apr 19, 11:44 AM
    • 6 Posts
    • 0 Thanks
    LincsCat
    My husband and I have had two PPI payouts: one in Sept 2017 and one in Jan 2018. I gave some of my tax allowance to my husband so it increases his allowance (his tax code 2017-2018 was 1309M) He earns just over £19,000. Both the PPI payouts had the standard 20% tax rate deducted.

    As my husband has an increased allowance can he claim back any tax on the PPI payments?

    Referring to a reply above, what is "taxable interest" and how do we find out about it?


    Many thanks
    Last edited by LincsCat; 11-04-2019 at 12:01 PM.
    • Dazed and confused
    • By Dazed and confused 11th Apr 19, 9:24 PM
    • 5,678 Posts
    • 3,014 Thanks
    Dazed and confused
    My husband and I have had two PPI payouts: one in Sept 2017 and one in Jan 2018. I gave some of my tax allowance to my husband so it increases his allowance (his tax code 2017-2018 was 1309M) He earns just over £19,000. Both the PPI payouts had the standard 20% tax rate deducted.

    As my husband has an increased allowance can he claim back any tax on the PPI payments?

    Referring to a reply above, what is "taxable interest" and how do we find out about it?


    Many thanks
    Marriage Allowance does not increase your husband's Personal Allowance. It entitles him to a fixed amount off his tax bill (£250 in 2019:20). HMRC increase his tax code number to make sure he gets the benefit during the year but he doesn't get a bigger Personal Allowance.

    Your husband can get upto £200 back but any other taxable interest he received in that tax year may reduce any refund due.

    You however can almost certainly make use of either more of your unused(?) Personal Allowance or the savings starter rate of tax and get all the tax you paid on the PPI back.

    I'm assuming the PPI interest is hundreds or low thousands of pounds.

    Taxable interest is pretty much all interest except that paid on an ISA, or some National Savings and Investments (NS&I) accounts.
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