Tax was taken from the compensation paid out by the banks and lenders which could be claimed back from HMRC
Our customers are receiving an average refund of £262.06 but you could be owed much more than this!
Why did the lender’s deduct money from PPI compensation?
PPI compensation includes an element of compensatory interest, which is treated as a type of savings interest and therefore taxable.
Before the lenders paid out PPI compensation, they took 20% of the compensatory interest and paid this to HMRC as tax however, the government’s personal savings allowance allows most taxpayers to earn £1,000 in savings interest tax free. This means you could be due a full refund of any tax deducted from your PPI tax refund compensation.
When your bank or lender upheld your PPI claim they issued you with a Final Response Letter. Within this letter was details of the compensation you would receive, inclusive of how much tax was being deducted. Don’t worry if you no longer have this, we can help request it.
How can you claim your PPI tax Refund?
You can claim your PPI tax refund by contacting HMRC directly and completing all the necessary paperwork. Alternatively, we have set up a simple to use, 100% online application that you can use to start your claim today. It only takes two-minutes to complete, and you can be on your way to receiving any refund you are due.