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Reclaiming withheld tax on PPI interest

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Via the ATT, HMRC has highlighted a new, automated process (first published in Agent Update 93) to enable faster processing of repayment claims in relation to tax withheld on the interest element of PPI refunds.

At present, agents can only file R40 claims on paper which are processed manually. HMRC is looking to address backlogs by introducing optical character recognition to speed up the process. This will require agents and taxpayers using paper forms to submit reclaims in a specific format in order for the automated system to be able to handle them.

HMRC is asking agents to follow the steps outlined in Agent Update 93 and ensure that claim details are not included in cover letters or separate attachments. HMRC also asks that claims are only made in respect of PPI interest. Where an individual is reclaiming tax on other income sources as well as PPI interest they should follow existing processes.

Issue: 1566
Categories: News