PPI TAX CLAIMS – another nice windfall
Most people who had a successful PPI claim didn’t receive the full amount of their redress or compensation as most of the banks and lenders involved deducted tax at the basic rate from the amounts paid.
This deduction of tax related to the statutory interest which was applied as part of the compensation calculation. Although this statutory interest is treated like savings and is therefore taxable, most people are not liable for any tax due to income levels and the range of personal allowances and savings allowances available within the tax system.
This means that many people can claim some or all of this tax deduction back which normally comes in the form of a tax refund from HMRC.
The refunds are claimed by tax year (6th April to 5th April of the following year) depending on the date you were paid the PPI compensation and the good news is that claims can be backdated for up to four years.
PPI tax claims can be made for individual claimants, joint claimants and for deceased persons depending on the circumstances.
How do I know if I had tax deducted
This information will be on the final decision letter you received from your bank or lender and should be clearly started as tax deducted.
Don’t worry if you don’t have that letter, we can help with that.
To find out how much of a refund you may be due, simply fill in the box below.