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Received a PPI refund between April 2016 and April 2020? You may very well still be owed £1’000s
PPI was usually sold with products that you would need to make repayments on, such as loans, credit cards or mortgages and it was designed to cover the repayments if you were unable to work due to illness, accident or loss of job.
As many as 64 million PPI policies have been sold throughout the UK!
Unfortunately, many of these policies were often mis-sold either by sales staff who were incentivised to meet targets, some policies were hidden in the small print that the consumer was not aware of and others were sold insurance they would never be eligible to claim for – hence the PPI scandal making the headlines.
Whilst the deadline to reclaim the PPI repayment has been and gone (29th August 2019), the good news is if you did receive a PPI repayment between 6th April 2016 – 5th April 2020 there is still a chance you can also claim the PPI Tax Return – the tax deducted from the interest on the policy.
So, what exactly is the PPI Tax Refund?
There are three main parts to the PPI:
- The actual PPI refund itself
- Interest on an extra loan that was added on to the original loan by the bank
- Statutory 8% interest on either one or both of the above for each year you had taken out the PPI
In short, when PPI pay-outs were made a basic rate of 20% tax on many of the claims was automatically deducted from the 8% interest before the consumer even received their money!
Who is eligible to claim?
Changes in April 2016 introduced Personal Savings Allowance (PSA) which is designed to stop savers paying tax on their savings interest. This allows basic taxpayers (earning less than £50,000) to earn up to £1000 a year tax free on their savings and high-rate taxpayers, earning more than £50,000 can earn £500 in savings interest before tax.
What this means is any PPI refund that included 8% interest on the policy is classed as savings income, which means if you were taxed on the interest you can claim it back, as the statutory interest from PPI refunds are allowed within your Personal Savings Allowance.
This is where we come in…. if you are a taxpayer and received PPI payment between the 6th April 2016 – 5th April 2020, then its great news as we can claim some, if not all of it back for you!
How to get started on your PPI Tax Refund with us….
Simply, complete the ‘Start your Claim’ online and click Submit. One of our Advisors will contact you to talk through your submitted claim and ensure you are eligible and have a genuine claim. Once that has been established, we will get the ball rolling with sorting out your forms, calculating your refund and process this with HMRC on your behalf.