Can I claim a tax refund on my PPI payout?
Have you had a PPI payout?
Well, you could still be owed £100’s.
This is due to the tax that may have been deducted from your payout.
Keep reading to find out why you may be owed tax back, how much you could be owed and how you can go about reclaiming it.
Why might you be owed tax back on your PPI payout?
Your PPI payout includes the refund of the PPI premiums paid, any interest added onto your PPI payments by your bank and statutory interest. Statutory interest is currently 8% per year and is given to you as compensation for being deprived of money.
The statutory interest is the only part of the payout that is taxable. However, despite the personal savings tax allowance that launched in April 2016, PPI payouts still have 20% tax automatically deducted from the statutory interest payment.
The personal savings allowance means basic 20% rate taxpayers can earn up to £1,000 a year of savings interest tax-free, £500 can be earned by higher 40% rate taxpayers, and additional 45% rate taxpayers don’t get an allowance.
So, if in the tax year you received your PPI payout, you didn’t earn over your personal savings allowance, you can claim back that automatic tax deduction.
You could be eligible for a tax refund on your PPI payout?
If you’ve received a PPI payout since 2016, it’s very likely tax was deducted and paid to HMRC. That means you maybe eligible for money back.
Here at Your Claim Matters, we’re able to do a free check and make the claim on your behalf on a NO WIN – NO FEE basis.*
Start your claim today by speaking with one of our expert team on 01902 954758.
*Please visit our Terms and Conditions page to view our Terms & Conditions for this service, this explains our fees and cancellation policy. Please also see our FAQ page for frequently asked questions.