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taxadvisor.uk, Chartered Certified Accountant
Category: Tax
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Experience:  FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
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Had a cheque PPI .As a non taxpayer am I due a

Resolved Question:

Had a cheque for missold PPI .As a non taxpayer am I due a refund.After waiting for 45 mins on phone to tax office just gave up
Submitted: 2 years ago.
Category: Tax
Expert:  taxadvisor.uk replied 2 years ago.
Hello and welcome to the site. Thank you for your question.

Please advise
if the payment to you included a supplemet for interest
also was any tax deducted?

many thanks
Customer: replied 2 years ago.

Refund due in joint names 2146.77

Gross 8% per annum interest on refund 2527.47

Less basic tax to be withheld on 8% 505.49

Net refund due 4168.75

Expert:  taxadvisor.uk replied 2 years ago.
Thank you for your reply and for additional information.

If the compensation includes -

simple interest at a rate of 8% per annum which is to compensate the customer for being deprived of the money they had paid to the firm for the PPI.

This interest is taxable at source as explained in HMRC manual Ref SAIM2015 here

http://www.hmrc.gov.uk/manuals/saimmanual/SAIM2105.htm

You have stated that you are a non taxpayer. If you think you are entitled to a repayment , you should complete Form R40 - Claim for repayment of tax deducted from savings and investments.

You can download the form from HMRC website here
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/419506/R40_M__internet_v2.0.pdf


More information on this can be found here

https://www.gov.uk/government/publications/income-tax-claim-for-repayment-of-tax-deducted-from-savings-and-investments-r40


I hope this is helpful and answers your question.


If you have any other questions, please ask me before you rate my service – I’ll be happy to respond.

taxadvisor.uk and other Tax Specialists are ready to help you
Expert:  taxadvisor.uk replied 2 years ago.
I thank you for accepting my answer.

Best wishes.

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