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bigduckontax, Accountant
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As a non taxpayer how do I find out if £619.80.can be refunded

Customer Question

As a non taxpayer how do I find out if £619.80.can be refunded to me . It has been paid by lloyds bank on a PPI settlement for 2 loans.
regarda Lewis Crosby
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello Lewis, I'm Keith and happy to help you with your question.
It is compensation for mis-sold PPIs and thus is outside the scope of UK taxation. From what you say it has already been refunded to you and if you are fully satisfied with Lloyd's compensation there is nothing more to be done.
I assume that Lloyds have given a breakdown of compensation paid.
If I have misunderstood your question please do not hesitate to come back to me for more information.
Customer: replied 2 years ago.

Less basic rate of tax to be withheld on 8% £ 619.80. is stated on the bLewiseakdown list.

Expert:  bigduckontax replied 2 years ago.

Write to you tax office if you have one, or approach your local HMRC office and request a refund of the tax deducted. As a non taxpayer HMRC may well refund immediately as opposed to waiting until the end of the tax year (5 April 2015).

bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.

Thank you for your excellent support.

There is one point I should mention. BBC News has the following advice:

'HM Revenue and Customs (HMRC) has confirmed that no tax is levied on the compensation sum victims receive, but it is on any additional interest paid.'

Just a point. If any interest has been paid than that will be added to your existing income and taxed at your marginal rate. The mention of 8% is confusing as this is the interest allowed on a judgment debt which is what the total PPI compensation is actually classed. Mark you that would indicate a compensation in the many thousands which seems a tad extreme.

Customer: replied 2 years ago.

no thank you .Am taking up your advice to tackle tax offices to check for refund

Regards lewis

Expert:  bigduckontax replied 2 years ago.
Delighted to have been of assistance, Lewis.