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  • FIRST POST
    • runninglea
    • By runninglea 10th Jul 17, 2:17 PM
    • 847Posts
    • 1,232Thanks
    runninglea
    PPI Repayment & Interest less 20% income tax
    • #1
    • 10th Jul 17, 2:17 PM
    PPI Repayment & Interest less 20% income tax 10th Jul 17 at 2:17 PM
    I have just received a letter from RBS:- dated 6/7/17

    862.68 PPI repaid, Statutory Interest 996.95 less 199.39 income tax

    Is this correct that income tax is taken off?

    Can I reclaim if I'm a basic rate tax payer and if so how?

    Many thanks for any responses received
    Year 2018 (6,800/17000mortgage repayment)Overall mortgage (62,100/165568) (37
    .6%) (34/100) payments made. Total paid 2018 year 6,800

    Total paid 2017 year 15,300Total paid 2018 year 6,800
Page 1
    • -taff
    • By -taff 10th Jul 17, 7:37 PM
    • 7,404 Posts
    • 5,459 Thanks
    -taff
    • #2
    • 10th Jul 17, 7:37 PM
    • #2
    • 10th Jul 17, 7:37 PM
    Get in touch with the HMRC
    • amersall
    • By amersall 11th Jul 17, 8:13 AM
    • 15,240 Posts
    • 18,841 Thanks
    amersall
    • #3
    • 11th Jul 17, 8:13 AM
    • #3
    • 11th Jul 17, 8:13 AM
    You can claim it back, if, you are a non taxpayer, or, you earn below your tax allowance.
    If non of the above apply, you will not get it back.

    • Dazed and confused
    • By Dazed and confused 11th Jul 17, 8:45 PM
    • 2,479 Posts
    • 1,184 Thanks
    Dazed and confused
    • #4
    • 11th Jul 17, 8:45 PM
    • #4
    • 11th Jul 17, 8:45 PM
    Previous responses don't tell the whole story.

    As a basic rate taxpayer you can have a maximum of 5999 interest which gets taxed at a rate of 0%.

    For a lot of basic rate payers i.e. those with wages (or pension income) of at least 16,500 the maximum is limited to 1000 taxed at 0% (this is somewhat confusingly known as the personal savings allowance).

    First thing to do is to check if you are still a basic rate payer with the 996 and any other interest you receive added to your income. If so you qualify for the 1000 personal savings allowance rate band where upto 1000 of your savings interest is taxed at 0%.

    If you are a basic rate payer and this is your only interest then you will be entitled to all of the 199 back.

    If you have to fill in tax returns for some reason it will be sorted when you fill in the 2017:18 return otherwise you just need to write to HMRC, after 5 April 2018, confirming all your income details - P60 details etc - so they can calculate your tax position for the year.
    Last edited by Dazed and confused; 11-07-2017 at 9:06 PM.
    • -taff
    • By -taff 12th Jul 17, 8:33 PM
    • 7,404 Posts
    • 5,459 Thanks
    -taff
    • #5
    • 12th Jul 17, 8:33 PM
    • #5
    • 12th Jul 17, 8:33 PM
    Interest on PPI payments fall under the 1000 a year you're allowed to earn before tax on any savings,
    • Welshie28
    • By Welshie28 15th Jul 17, 1:42 PM
    • 90 Posts
    • 83 Thanks
    Welshie28
    • #6
    • 15th Jul 17, 1:42 PM
    • #6
    • 15th Jul 17, 1:42 PM
    Hi, any compensatory interest is subject to income tax deducted.
    You would require an R40 form which is available from the HMRC to try and claim it back.
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