Category: PPI Tax refunds

A PPI tax reclaim can get more complicated that you may originally have thought. That’s why it is always helpful to have a trained solicitor on your side to help you understand them. One of the main question you have is probably about whether or not you are actually eligible for a PPI tax reclaim. You may be self-employed or may not be a tax employer in the UK, but that’s okay! Gowing Law Solicitors has helped so many people in your position. Claimants who may have been turned away from HRMC are more than welcome to come to Gowing Law for help. We can help you understand how you can move forward with your claim and get your money back. Check out our PPI self-assessment form for more information.

The basics of a PPI reclaim

Before we jump into PPI tax and whether or not you are eligible, let’s start with the basics of PPI in general. That way you can fully understand why your bank/lender may have taxed your PPI pay-out. They are a bit different from making a work injury or traffic accident claim, so make sure to read this carefully:

As you can see from the description above, many people took out PPI in order to protect a financial scheme they had invested in or needed to pay back. This included:

• Credit Cards
• Visa Cards
• Credit Schemes
  Mortgages
• Loans

Unfortunately, when PPI was sold it was usually not suitable for the person who owned it. For instance, it may have been sold to someone who owned their own business. Why would they need it if they got ill? After all they were the one who paid their own wages. Therefore, they did not need any financial protection if they got sick. This meant that the PPI scheme was not suitable to be added to their loan. Many people became victims of this scheme because it was simply not suitable for their needs. That is why the deadline was set for the 29th August 2019 to ask for their money back.

Why was tax taken off your PPI pay out?

Now, when a loaner/ bank returned your money it is very likely that they automatically took away 20% of your pay-out. This is because the main aim of your PPI claim is to return you to that original financial position you were in before you made a loss. If you suspect that this happened to you then you need to check either your tax statements or the PPI pay-out statement. According to Becky O’Connor, a financial specialist from Royal London,

“If you have received a payout for PPI compensation, it is worth checking the statement for details of any tax paid on the interest element of your refund. If it was and tax was not due because the interest income was within your personal allowance or you are a non-taxpayer, you may be entitled to request a refund.”

This leads us on to another point about why you could be due this tax back. It is important to understand the amount you paid out in relation to your own personal allowance. Your PPI payment should have included an annual interest of 8% every year. This was to compensate other claimants who may have lost money due to their mis-sold PPI policy. You should be able to have this interest returned to you alongside your tax. This is what is known as PPI interest. It’s important to understand that this PPI interest could have also been taxed, meaning that it is likely that you should be able to get more money back.

Could you be eligible for a PPI tax reclaim?

Normally, if you have had tax taken off your PPI claim, you can have it returned to you if you have kept within your own personal savings allowance or are a non- tax payer. This is because the interest was not necessary for you to make up the amount you paid in. If this has happened to you then you may be considering filling in a R40 form. However, there are some other ways that you could be eligible for a PPI tax reclaim.

Job Changes

Covid-19 has changed the world as we know it. As people in the UK have currently just come out of lockdown, and most are considering how they can safely go back to work, it is very likely that the tax you pay from your work or the amount you receive through your wage is going to change. Before the pandemic, you may have simply been trying to change jobs or you may have unfortunately lost your job. These job changes have affected the amount of income you have brought in, therefore you may have been paying too much in to your PPI payments. That means any interest that was added to your payments was unnecessary and can be reclaimed.

Redundancy Payments

Paying for your PPI through your job wages is one thing, being made redundant and using your redundancy payments pay is completely different. If you were made redundant by your employer, your redundancy wage should have been used to sustain you until you found a different job. Instead, you wasted the money on a policy that you never actually needed. That is why you are eligible to get this money back.

Pension Payments

Another thing that could affect the amount of income you bring in, and therefore the tax you pay on it, is your pension. Now, here at Gowing Law we do deal with mis-sold pensions that have robbed people of their life savings. But in terms of a normal pensions, this is different. You will have 25% of your pension tax free. However, you will pay 75% through income tax. This means that your own personal savings allowance should be around £12,500. If you go under this allowance then you should be allowed to pay some of the tax back. If some of your pension payments have gone in to paying for PPI then you should be allowed to get this money (and the tax) back. You could also be eligible if you have used income from a life or pension annuity.

Previous Tax Assessments

If you have previously filled out a tax assessment then you may have seen that you were eligible for PPI tax reclaims. This is because it tallied up all of your income and will display what taxes were paid on what payment. You may see additional payments that you originally did not realize you were paying in accordance to your PPI agreement. If you believe that you have paid too much on different taxes on your income, you can ask for it to be returned to you. You can write a letter of grievance to your lender/bank to let them know of your intentions and that you do require information to move forward with your claim.

Payments from abroad

Not everyone has stayed in the UK between 2016 and the present day. Some people may have taken out PPI and then moved abroad to pursue a business in a different country. They may have learned about the basics of PPI and then used their financial loan to try and work elsewhere. Additional interests may have been put on the tax and the PPI because the person was no longer in the UK. You will have to check with your solicitor to see if this has happened to you. If it has then you may be in for a higher pay-out. It entirely depends on your own personal circumstances.

PPI Plevin Case

Now, this is a bit different from getting tax on your PPI, but it is still something that you may want to consider doing. A PPI Plevin case is where you were paying an unreasonable amount of commission on your PPI to the loaner or your bank. You may not have been aware of it and so only found out when you tried to make your PPI claim. Make sure to check your tax statements carefully. That way you can see if anything underhanded has happened without your realizing it. You should never have been put in to this position in the first place, therefore you are due compensation.

If you pursue this type of case, you will not be allowed to claim tax on your PPI claim. So make sure to discuss it with your solicitor before you decide what legal battle you want to pursue. Gowing Law Solicitors also help clients with PPI Plevin cases, so make sure to get in contact with us to let us know how we can help you!

The evidence needed for a PPI tax reclaim

It is extremely likely that you are eligible for a PPI tax claim. If that is the case then you need to start considering legal action. You can fill out the R40 for on your own, but this can get very complicated, especially if you need to figure out what sort of evidence you have to prove that you are owed PPI tax claim compensation. Take a look at our infographic below to see some examples of how you can prove you are owed your tax back:

One of the most important things you need to remember is that you need to keep as much documentation as you can. Whilst some of it may not be useful in the long run, each communication or legalized loan document can show how much you have paid over the years. In turn, this can demonstrate why your tax should never have been taken off your PPI claim in the first place.

Make sure to keep these safe for your solicitor. That way they can be used to strengthen your case when you fill out your R40 with the help of your lawyer.

Gowing Law Solicitors can help you with your PPI tax reclaim!

So far, Gowing Law has managed to receive £10,000 in rebates for our customers! This includes helping customers who have already been turned down from HMRC. That’s why it’s time for you to get in contact with Gowing Law Solicitors. We can start working on your PPI tax reclaims case ASAP. All of our customers are impressed with our experience and our useful online submissions system. You could be owed £100’s back from HMRC. So, why not have our experienced lawyers start working with you? That way you can earn some extra money. This can be spent over the summer or saved for a rainy day.

If you are ready to work with Gowing Law Solicitors, feel free to fill in our submissions system to get started. This will let our solicitors know all of the basics information they need to get focused on your claim. The average turnaround time, once this is completed, is around 5-6 weeks. So you should have your tax repaid in no time.

You can also contact Gowing Law directly to talk about PPI tax claims. Call 08000418350, email info@gowinglaw.co.uk or use our DM system located on our contact page. A member of our team will then be in contact to talk about your claim. Let us know if you have any questions! We would be more than happy to help you.

Want to learn more about PPI tax reclaims?

You can do this by following our blog page! We are proud to keep our blog page updated regularly. This is with information about the latest UK laws and present issues (like Covid-19). However, we also cover information about personal injuries, traffic accidents, accidents at work and immigration. Please let us know if there is a topic that you would like us to cover. You can send it in to info@gowinglaw.co.uk. We can also sign you up to our weekly newsletter. This newsletter discusses our services in detail and covers specific law topics. They are informative and may make you think about getting in contact with us. We would always be happy to help you with any questions you may have!

We look forward to seeing you in our next blog!

PPI tax claims solicitors are extremely helpful when it comes to helping you reclaim the money lost on your PPI pay out. Many people think that the deadline for PPI reclaims have passed, therefore there is no point in trying to claim any more money back. You have been awarded for your losses. That should be the end of it. However, did you know that if you submitted a claim before the 29th of August 2019, you could claim back any tax that has been taken off your pay out? A trained PPI tax refund solicitor can help you collect this refund.

Tax reclaims can be complicated. That’s why you need the help of a trained professional to make sure your claim is not invalidated. This blog will help you understand the basics of PPI tax claims, as well as how a trained PPI tax claim solicitor can help you get the money that you are due back.

Did you get a successful PPI claim?

Before we talk about PPI tax claims, let’s start off by talking about PPI in general. That way you can understand whether or not you are eligible to get your tax back. PPI is short for “payment protection insurance”. PPI was a “protection” policy sold by the banks that would cover anyone who had a financial policy taken out. This included policies for:

• Credit Cards
• Loans
• Mortgages
• Credit Schemes

If you had PPI you would usually pay extra in order to protect yourself if you could not pay back your financial plan. For instance, you may have been ill and so did not go to work, therefore you did not have the funds to continue with your monthly payments on your financial obligations. This PPI would ”supposedly” cover this period of time until you got the funds to continue with your payments.

However, in most cases PPI was mis-sold to people who did not need it, such as those who were self-employed. That’s why so many people have now put in PPI claims to get their money back. Over £34 billion of PPI has been repaid so far. However, that does not mean that the tax has also been repaid. If you have successfully been able to get your PPI back, you should be able to get your tax back as well!

Exceptional Circumstances for PPI claims

Honestly, there are only a few reasons why you should be able to make a PPI claim now that the deadline has passed. Each of these cases will be judged individually, so you will be required to provide as much information as possible to help them judge your case. Here are some examples of where you may be allowed to file a compensation claim:

• A serious illness that stopped you from making a complaint
• The death of a loved one/ a bereavement that stopped you from making a PPI complaint
• Caring for a sick family member or relative
• A technical difficulty with the website when you tried to submit your claim

Speak to your solicitor if you think you may have an exceptional circumstance that could validate your claim.

Why did they take tax off my PPI pay-out?

As you can see, there are three main factors behind the overall pay-out you will receive. The only factor that can be taxable is your statutory interest, which should be around 8% per year. If you see that your PPI pay-out has been taxed, it is usually because statutory interest has been created to return you to the position you would have been in previously if you had not taken out PPI. Should this tax be due on your pay-out most banks and firms will take it out automatically at around 20%.

You should be able to see the deduction of tax on the bottom of the confirmation of your PPI pay-out. If you have noticed this tax deduction then there is still a chance that you could get it back. This is where a trained PPI tax reclaim solicitor can help you make up the difference. They can make a rough estimate to see how much you could be owed. Make sure to provide them as much information as possible to make sure you know what you are owed.

Will I be automatically refunded for my PPI tax?

Unfortunately, most banks and lenders will not just automatically refund any tax that you may have. Instead, you will have to fill out a complicated R40 form to get a refund. These can be quite difficult to understand, but a solicitor can help you with the self-assessment and understand what interest you had on your PPI. That means the PPI tax should be refunded to you.

What should you do if you have been rejected for a tax reclaim?

The first thing that you do is calm down. There is still a way that you could claim the tax back on your compensation. A solicitor can help you appeal if you are unsure or have been rejected for a refund of the tax that was taken from you. This includes:

• If the bank has told you it needs more information
• If you have been rewarded an unfair amount of compensation

Normally, when it comes to PPIT, the deduction is taken off automatically from the banks or your lender. Therefore it should not be an issue to request for this to be returned to you. A trained lawyer can help you sort out a “subject access request” form to help you get more information about your PPIT. This should give you all the information about your involvement with your lender over the past 6 years.

If you do not think you have been awarded the fair amount of tax for your PPI claim, you should consider the different factors behind your claim. For example, did you owe the bank money when you made a claim on your policy? Your bank may have also made assumptions about your own policy that you will have to rectify. Make sure to look at any pay-out letters carefully to see where any mistakes could have been made. Your solicitor can then advice you on what to do going forward.

How much could I get from a PPI tax pay out?

Now, this depends on how much money you put in to your PPI payments in the first place and how much you received when you received your payment. The first thing you need to consider is your tax allowances. For instance, under the marriage tax allowance you could be owed over £1,000 for a PPI tax. You will also need to consider whether you have a PPI Plevin case, however keep in mind you cannot claim tax if you do go to the court system with your case.

Now, if you need an example of how much you could earn from a PPI tax reclaim, Martin Lewis, a PPI claims expert, gave an example of one of his own clients. Geraint tweeted at him:

As you can see, Geraint showed that his partner managed to claim hundreds in pounds as well as get a little extra with the tax rebate. Most people who paid the 20% basic rate of tax could claim over £1,000, whilst others who paid 40% rate of tax could claim around £500. The majority of people are owed money back and don’t even know it! This is why they need a trained solicitor to help them get the pay out that they deserve.

How can a solicitor help me with my PPI tax claim?

If you are interested in pursuing a PPI tax reclaim, you can try and fill out a R40 form on your own. However, this may be more complicated than you realize. Not only are there different versions of the form (i.e. for the self-employed or those living abroad) but you may not know how to fill it in. That’s why you need the help of an experienced legal solicitor to help you get your money back.

Here are some examples of why having a solicitor help you reclaim your PPI tax is so useful:

As you can see from our list, having the experience of any sort of PPI tax solicitor can help you avoid small mistakes that could invalidate your claim. They will schedule you and help you understand a rough estimate of how much you could be due from your claim. A PPI tax lawyer can also help you hit deadlines and explain why they have been put in place. Even if this has to be done through remote communication, due to the effects of Covid-19, this can be managed.

Make sure to give your solicitor as much evidence as possible to support your claim. That way they can manoeuvre your case with precision and help you get the pay out that you deserve.

What evidence do I need to help my PPI tax claim?

Evidence for PPI tax claims are a little different to evidence you might find for a traffic accident or a work injury. Instead of photographs and videos, you need to show communication that you have had with your bank or lender. You may decide to write a letter of grievance to them, or perhaps you can show PPI statements or officially documentation about your lending scheme. This can show how much you have spent on your PPI and how much tax you should be able to receive in return.

Collect as many documents as possible that you think are relevant. Your solicitor can then order them and let you know which ones will be relevant to your case. They can also use them to help fill out the R40 form.

Gowing Law Solicitors can help with your PPI tax claim!

So far, Gowing Law has received over £10,000 in rebates for all of our customers looking for a PPI tax reclaim. This includes helping customers who were already turned down by the HMRC. Not only have we developed our own online submissions system but we have worked with clients all over the UK. A huge number of these clients did not even know that they were owed £100’s from the HMRC. If you are one of these people, these extra funds could really help you over the summer, especially if you are struggling with funds due to Covid-19. Our trained solicitors can help you get the payout that you deserve in around 5-6 weeks. Our services are fast, easy and efficient. All of the lawyers at Gowing Law know exactly how to help you. We are ready to listen to your case!

Feel free to use our submission system to get in contact with Gowing Law about you PPI tax claim. If you want to talk to our team of experts, feel free to call us on 08000418350, email info@gowinglaw.co.uk or use our direct messaging system located on our contact page.

Please get in contact as soon as possible! Covid-19 has brought about a backlog of cases in the UK legal system. That means there is a higher chance that your case could be delayed if you do wait. So, get in contact with Gowing Law Solicitors. We can help get your PPI tax returned to you as quickly as possible.

Want to read more about PPI tax claims?

If you have claimed back your PPI then you could be owed the tax. That’s why it’s essential that you keep up with our blog page. Here we talk about the latest information about PPI taxes, financial mis-selling and personal injury claims. Check out our basics of PPI tax claim blog and our blog about self-employed PPI tax claims. We also talk about recent news topics about Covid-19 and the recent updates about UK law. If you want to suggest a topic for our blog, feel free to write in to info@gowinglaw.co.uk. We would be happy to write about your suggestions. Gowing Law also has a newsletter that gets sent out every week. Let us know if you’re interested and we can sign you up.

We look forward to hearing from you soon