Self Assessment Question

BMAC

Hello,

I am wondering if you can help. Im not an MIP but am looking to draw on your extensive knowledge. I have a friend who has asked me to help with there SA tax return. Their year end is 30 Sept'13 so I understand that is it the figures from that period that will be used on the 13/14 tax return. My friend has received a number of PPI refunds between January 2013 & February '13. should they have been dealt with on his previous tax return 12/13 since this was personal income he earned within that year?

CeeJaySix

Personal income in Jan/Feb 13 should have hit the 12/13 tax return, yes.

PPI advice from HMRC - http://www.hmrc.gov.uk/manuals/saimmanual/saim2105.htm

Essentially, the compensation is exempt anyway, but any interest received may have been paid gross and therefore have tax due.