How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask TonyTax Your Own Question

TonyTax
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15841
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
13905389
Type Your Tax Question Here...
TonyTax is online now

I received recently some PPI refunds and had to pay tax on

Resolved Question:

I received recently some PPI refunds and had to pay tax on the interest. Can I claim this back? I do not know my tax code.
Submitted: 1 year ago.
Category: Tax
Expert:  TonyTax replied 1 year ago.
Hi.
Can you tell how much your annual income is please.
Customer: replied 1 year ago.
F. Barber Properties Ltd £5,000 less £1,000 tax
UK Banks/Investments interest £158 after tax
Pension 1 £1,228.40 less £245.60 tax = £982.80
Pension 2 £1,480 less £592 tax = £888.20
Basic State Pension £147.73 a week
Customer: replied 1 year ago.
I retired on 1st November 2014 and have a self invested pension pot of £56,000 which I may have to dip into to cover some of my outgoings. My last tax code was 807LM when I left. I do not know how to get my tax code for the present time.
Expert:  TonyTax replied 1 year ago.
Thanks.
Can you tell me how much the gross PPI interest payment was and how much tax was deducted please.
Customer: replied 1 year ago.
Gross Interest was £26,596.84p
Tax deducted £5,319.37p
Expert:  TonyTax replied 1 year ago.
Thanks.
Leave this with me while I draft my answer.
Customer: replied 1 year ago.
Thanks
Expert:  TonyTax replied 1 year ago.
Hi again.
I'm assuming all the figures are for 2015/16, the current tax year.
Your regular income is £15,586 per annum from which you have said tax of £1,877.00 will be deducted over the year. Add the PPI interest and your total income for 2015/16 will be £42,182 with tax deducted of £7,196.37.
The basic personal allowance is £10,600 so if you deduct that from your gross income, you will be left to pay tax on £31,582. Tax on that at 20% is £6,316.40. As you will have paid £7,196.37, you will be overpaid by £879.97 by the end of the tax year. You could wait until the end of the tax year and make a claim for repayment of the overpaid tax or have your tax codes adjusted now (see below) to get back the excess tax through your pensions.
You should call the tax office on the number below to have your tax codes reviewed and changed if necessary while you are on the phone.
Of your personal allowance of £10,600, £7,681 is covered by your state pension which is paid gross. That leaves £2,919 in unused allowances which you should ask the tax office to use against pension 1 (code 122L) and pension 2 (code 148L) so that no tax is deducted for the rest of the tax year and any tax deducted so far in this tax year is repaid via your pension payments. The balance of your personal allowance of £211 should be used against your F Barber salary (code 22L). The tax office phone number is *****:
https://www.gov.uk/government/organisations/hm-revenue-customs/contact/income-tax-enquiries-for-individuals-pensioners-and-employees
I hope this helps but let me know if you have any further questions.
Customer: replied 1 year ago.
Thank you Tony. Very helpful.I will do as you suggest and contact the tax office and see what transpires. Again, thank you.John
Expert:  TonyTax replied 1 year ago.
Thanks and good luck with HMRC.
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15841
Experience: Inc Tax, CGT, Corp Tax, IHT, VAT.
TonyTax and 2 other Tax Specialists are ready to help you

What Customers are Saying:

 
 
 
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
< Previous | Next >
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
  • Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult. GP
  • I couldn't be more satisfied! This is the site I will always come to when I need a second opinion. Justin
  • Just let me say that this encounter has been entirely professional and most helpful. I liked that I could ask additional questions and get answered in a very short turn around. Esther
  • Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help. Mary C.
  • This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!! Alex
 
 
 

Meet The Experts:

 
 
 
  • Sam

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
< Previous | Next >
  • http://ww2.justanswer.com/uploads/TA/Tax Expert/2013-8-21_231010_sam.64x64.jpg Sam's Avatar

    Sam

    Accountant

    Satisfied Customers:

    7088
    26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
  • http://ww2.justanswer.com/uploads/BI/bigduckontax/2013-8-12_222058_1.64x64.jpg bigduckontax's Avatar

    bigduckontax

    Accountant

    Satisfied Customers:

    2333
    FCCA FCMA CGMA ACIS
  • http://ww2.justanswer.com/uploads/TA/TaxRobin/2013-8-28_16186_femalebusinessprofessionalbinderhand11038485.64x64.jpg TaxRobin's Avatar

    TaxRobin

    Tax Consultant

    Satisfied Customers:

    524
    International tax
  • /img/opt/shirt.png taxadvisor.uk's Avatar

    taxadvisor.uk

    Chartered Certified Accountant

    Satisfied Customers:

    2845
    FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
  • http://ww2.justanswer.com/uploads/MS/MsAM/2012-6-9_16426_anna.64x64.jpeg Anna's Avatar

    Anna

    Teacher, writer, biologist

    Satisfied Customers:

    270
    Great research skills, variety of work experiences, teaching experience.
  • http://ww2.justanswer.com/uploads/PD/pdheslin/2012-6-6_232056_pambig.64x64.jpg pdheslin's Avatar

    pdheslin

    Consultant

    Satisfied Customers:

    51
    20+ years of internet site creation and search engine optimization. Dozens of search tools at my disposal.
 
 
 

Related Tax Questions