If you’ve paid too much tax on your savings or investment income, you might be entitled to a refund. One of the ways to claim it is through form R40 – but only if you don’t complete a Self Assessment tax return.
For those who do submit a Self Assessment return, the process is simpler. Any tax you’re owed is automatically calculated as part of your assessment, so you won’t need to submit a separate claim. But if you don’t file one, you’ll need to make a direct claim using form R40, which covers the current tax year and the previous four tax years.
How to Claim
If you’re claiming for yourself, you’ve got two options: you can either do it online or send off the postal form. If you’re claiming on behalf of someone else, you’ll need to use the postal option, which you can find on the Government’s website.
To complete the claim, you’ll need to provide details about your income, including:
- Employment income
- Pension income
- State benefits
- Interest and dividend income
- Income from trusts, settlements, and estates
- Income from UK land and property
You’ll also need to include details of any payments you’ve made under Gift Aid, as well as whether you qualify for the blind person’s allowance or married couple’s allowance. And don’t forget to tell them where to send your refund!
Using an Agent
Did you know that an agent can make the claim for you? From 30 April 2024, all agents must use the new standard HMRC R40 form to claim tax refunds on savings and investments for their clients.
If your agent is to receive the repayment on your behalf, they’ll need to fill in the nomination section on the new form and include their Agent Reference Number (ARN). If the agent uses an older version of the form, HMRC will still accept it, but the repayment will come directly to you, not your agent.
Don’t forget, the client (that’s you!) must also complete the section that authorises the agent to act on your behalf. If that section is missed, the refund will go straight to you.
R40 Claims for PPI Interest
If you’re claiming a tax refund on the interest paid as part of a Payment Protection Insurance (PPI) refund, there’s one extra step. You’ll need to send in evidence of the original PPI payment, showing the gross interest, tax deducted, and net interest. This could be a certificate from the company that paid the refund or the final response letter.
Need Help Claiming Your Tax Refund?
Tax refunds can feel a bit complicated, but we’re here to help! Whether you’re claiming for yourself or through an agent, our team can make sure everything is filled in correctly, so you get back what you’re owed.
Get in touch with Jon and the team today for expert advice on tax refunds and everything else related to your savings, investments, and business.
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