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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15977
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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I received recently some PPI refunds and had to pay tax on

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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.
Can you tell how much your annual income is please.
Customer: replied 2 years 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 2 years 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.
Can you tell me how much the gross PPI interest payment was and how much tax was deducted please.
Customer: replied 2 years ago.
Gross Interest was £26,596.84p
Tax deducted £5,319.37p
Leave this with me while I draft my answer.
Customer: replied 2 years 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 *****:
I hope this helps but let me know if you have any further questions.
Customer: replied 2 years 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
Thanks and good luck with HMRC.
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