If you have received compensation following a PPI claim, you will have paid income tax on a portion of that payment.
However, not all people have to pay income tax on their PPI compensation, and it may be possible to recover this money from HMRC.
At Joseph James Law, we have a Tax Refund team who are here to help.
Our simple, easy to use website allows you to submit your details to us, and we will deal with all the paperwork.
The process is quick, with everything being completed by yourself on our website, and you could receive a payment within a matter of weeks.Start Your Tax Refund Claim
How much will it cost me to claim?
At Joseph James Law, all PPI Tax Refund claims are processed on a No Win No Fee basis. For a No Win No Fee claim, you don’t need to worry about anything as we will bear all upfront costs, and you will only need to pay a fee if your claim is successful, this means you will never be out of pocket. The fee following a successful claim is 40% plus VAT of any sum recovered.
More about PPI Tax Refund Claims?
When you made your PPI Claim, your pay-out was made up of the compensation (which consists of premiums paid and their interest) and the statutory interest on the compensation, at 8%.
The statutory interest element is the only part of the claim which is taxable in the tax year that you receive it, and not the tax years in which you were paying any premiums. The statutory interest is treated for tax purposes as savings income. In most cases, basic rate tax is deducted at source on the interest element of a PPI pay-out before it is paid to you. The tax is then passed to HMRC on your behalf.
But why could I be entitled to claim?
It’s possible that you may not be liable to pay tax on the PPI interest element, e.g. if when this is added to your other savings income for the tax year, the total is within your Personal Savings Allowance, or if your total taxable income is within your tax-free personal allowance (£12,500 in 2019/20). Then it is possible to claim back the tax which has been deducted at source.
At Joseph James Law we can provide specialist advice in relation to claiming back the tax paid on your PPI claim, and help you recover the compensation you deserve.
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