Tax Payments Deducted from PPI Refunds
People who claimed back their mis-sold Payment Protection Insurance are often unaware they may be able to claim back the tax that was automatically deducted from their settlements.
When settlements were made they typically included three parts:
- PPI premiums;
- contractual interest; and
- compensatory interest
HMRC consider the compensatory interest element to be taxable as it is similar to interest accrued on savings.
Lenders therefore adjusted their settlements by reducing the compensatory interest by 20% which they paid to HMRC prior to paying customers.
The Government introduced a new personal savings allowance in April 2016 which means most taxpayers can earn up to £1,000 a year of savings interest without paying tax on it. This change in rules means most people are able to claim back the tax deducted from their PPI settlements since that date.
We understand how daunting it can be to deal with the tax office and can help process your tax refund claim on your behalf on a no-win, no-fee basis.
Start your Tax Payments Deducted from PPI Refunds claim
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We charge 20% +VAT on compensation awarded. After instructing us you can cancel our services within 14 days without charge. You can claim yourself for free either to the person against whom you wish to complain or the relevant statutory ombudsman (providing where applicable you have contacted the company/person in question first).
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