PPI tax may have been automatically taken away from the amount you were entitled to in your PPI pay-out. Did you know that the amount taken away from your full sum could be up to 20%? This is because it may have been automatically deducted from the full amount of money you expected to be paid. Gowing Law is ready to help you get you your money back. We can help you claim it back from HMRC if you just fill out our handy self-assessment form. It is completely understandable if you do not know how to claim it back yourself, or perhaps have already been rejected for a claim. This is where Gowing Law Solicitors can step in to help you understand exactly what you are owed.
We are a professional legal firm that can help you get to grips with the basics of PPI tax and any additional questions you may have about PPI and PPI tax in general. Our solicitors will always be here to guide you through your claim. You shouldn’t delay in your claim. After all, you only have 4 years to claim after your tax year ends! Instead, start your PPI journey with Gowing Law Solicitors today. Click the button below to be taken to our PPI tax page:
What do you need to know about PPI?
Before you dive into information about how you know if you are owed PPI tax, you need to understand information about PPI in general. After all, the only reason you lost money is because you bought a PPI policy in the first place. PPI stands for “payment protection insurance.” It is usually bought to accompany some sort of loan or financial policy. You may have had it included in a:
- Credit Card Repayment Scheme
- Financial Loan
- Mortgage Payment Plan
- Catalogue Payment
If you had been told that your payment plan came with a form of cover, then this was usually PPI. PPI was used to ensure that you could keep repaying the loan even if you were ill or did not have the funds to cover it. The best way to think about it is that it was a safety blanket. It would provide a small amount of money so that you could keep up with the payments. However, a lot of the time people who bought these schemes may not have even realized that they were paying for PPI. This is where it may have been mis-sold.
What do I need to know about PPI tax?
Now, if you have written in to your PPI provider over the last 12 years, you have probably been able to claim for your PPI back. Many people believed PPI was compulsory or they were pressurised into buying this policy. That is why they were able to get their money back. However, if you fell into this situation, were you able to get your full amount back? If you were charged a higher tax rate, it is very likely that you did not receive the entirety of the pay-out that you were entitled to.
You have the right to have this tax returned to you if you meet certain requirements. This is where a Gowing Law Solicitor can help you with your claim. PPI tax can get complicated, but with the help of a legal professional, you can get a rough estimate about the amount of PPI tax you could be owed.
Why was tax taken off my PPI?
Let’s talk about what actually makes up a successful PPI claim. If you did receive money back from HMRC, it is going to be made up of three financial elements. These are:
- A refund of the money you put into your PPI.
- Any additional loans your bank may have asked you to take out to help pay back your PPI. Through this, your payments may have accumulated interest.
- Statutory interest was added every year to both sums. This should have been at 8%.
Overall, the duty of these categories was to help you get back to your original financial position before you were forced to pay for PPI. However, if you go over the original amount then this is seen as adding interest. If your interest goes over your personal savings allowance (PSA), there is a likely chance that this will be taxed. Only your statutory interest is allowed to be taxed. This is why you may find from your statement that you had 20% of your original pay-out taken away.
Now that you understand why you had this tax taken away, it is time for Gowing Law Solicitors to help you get it back from HMRC.
How can I tell if I have lost money due to PPI tax?
Naturally, you may have a number of questions about PPI tax claims, however the biggest on your mind is about how you can find out whether or not you can claim for tax back. If you are feeling confused about whether you can receive tax back, or perhaps why you may have been initially rejected for a PPI tax claim, Gowing Law Solicitors can help you.
The first thing that we would recommend is that you take a look at your PPI return statement. This should show whether or not any tax was automatically deducted from your initial pay-out. However, if you are still feeling a little confused about whether or not you could be owed any, you should come to a trained solicitor for advice. Gowing Law’s lawyers are tax specialists and so know exactly how to help you move forward with your claim. Not only can you fill out our quick self-assessment form, you can ask our solicitors for advice on your own specific situation. They can give you useful hints, tips and help about how you can tell whether or not you could be owed any money.
Remember, even if you have already been rejected for a PPI claim, there is no harm in going to a trained solicitor for help. You may have simply made a mistake in filling out your form, or perhaps claimed for the wrong amount. A tax specialist solicitor can help you understand where you went wrong and how you can move forward with your claim.
How much money could I claim from PPI tax?
One of the main things you need to know about any pay-out from PPI tax is that it depends entirely on your own situation. How much you paid in to PPI is how much you get out, therefore your PPI tax will depend on the amount that was taken away in the first place. Here are some examples of what you may be able to claim:
- Basic Rate Payers: 20% means that you could earn up to £1000 of saving interest completely tax-free.
- High Rate Payers: 40% means that you could have around £500 of savings tax-free.
- Top Rate Payers: 45% unfortunately means you will not be eligible for a PPI tax pay-out.
This is why it is so important to speak with a solicitor before you make your tax claim. If you still have all of your previous documentation about your PPI pay-out then your lawyer can help you estimate how much money you could receive back from the tax. That way you won’t have to guess figures and feel sad when the pay-out is less than what you expected.
What is the best way of getting my tax back?
Honestly, we would have to recommend filling out our self-assessment form. You can try and claim a PPI-tax refund on your own, however this can get extremely complicated fast. Gowing Law’s self-assessment form only requires the basic information about your claim. All you need to do is fill out the form and then one of our trained tax specialist solicitors can get in contact with you about your claim. They can guide you through the process and contact HMRC on your behalf. This will simplify the process and will only take around 5-6 weeks to get your money back.
Gowing Law has already helped so many people around the country to get the money back that they deserve. We don’t mean to brag, but so far we have actually managed to get over £10,000 in rebates! To get started, all you need to do is visit our self-assessment form below:
Have you been “Plevined”?
One thing that is important to bring up about losing money with PPI and PPI tax is the new PPI Plevin Rule. Now, if you go for this option then you will not be able to claim PPI tax back. But it should be something that you should consider if it applies to you.
If you fall under the Plevin rule, it means that more than 50% of your PPI’s overall cost was changed into commission for your lender. Should this not have been explained to you, or perhaps it was simply added to your bill and you paid without realising, you could be owed this back. Most of the commission taken by banks was actually paid at 67%. So, you could be owed this money back, plus any interest that was added to your total fees.
Think carefully about the type of PPI case you want to pursue. If you believe that you could get rewarded your money back from a PPI Plevin case then discuss this with your lawyer. They can help you move forward with your case and avoid any future pitfalls
Should I wait to make a PPI tax claim?
Most certainly not! No matter if you have a work accident case or some form of financial mis-selling, the longer you wait, the less likely that you will have the right evidence or amount of time needed to make the claim. For PPI tax claims, you have only around 4 years from when you received your PPI pay-out. In order to re-claim your tax you need to contact HMRC within this time period. Gowing Law Solicitors can do this on your behalf and get your money to you as quickly as possible.
Gowing Law is here to support you with your PPI tax claim
Here at Gowing Law, we are ready to make the PPI tax claims process simple for you. That way you can get your money back as quickly as possible. Take a look at our PPI tax rebate page now and fill out our self-assessment form. It should only take you a few minutes to get down your information so that one of our tax specialists can help you! We can offer help and advice completely free of charge. If you do decide to work with us, we work remotely to ensure that there is no threat of Covid-19. We can also offer our services on a “no win-no fee basis”. That means if we do not win your case for you, you will not need to pay any fees. So, what’s stopping you from making a PPI tax claim today? Nothing!
If you want to speak to someone directly about your claim, you can also get in contact with us by phoning 08000418350, emailing info@gowinglaw.co.uk or by using our contact form. We can also answer any questions you may have about your PPI tax reclaims. Feel free to get in contact at any time.
Want to read more about PPI tax claims
We update our law blog every week with new legal articles that can help you understand your rights when it comes to certain claims. We have a number of articles on PPI taxes, so why not check them out below:
- The top 5 questions about PPI tax claims
- If you received a PPI payout, you could be owed PPI tax from HMRC
- What could make me eligible for a PPI Tax Reclaim?
- The top reasons why you need a solicitor to help you with PPI Tax Claims
- Can I get a PPI tax refund if I’m Self Employed? Learn how!
- Do you want to claim PPI tax back? Here’s how it works!
Our blog also covers additional legal topics about financial mis-selling, cosmetic negligence claims, work accident and public injury compensation, RTA claims and criminal activity claims. Feel free to scroll through our blog until you find something you like. We are confident that you will like what you read. If you don’t see what you are looking for, why not write in to ask us to write about a certain topic? We would be happy to write an article about your questions. Feel free to send in your suggestions to info@gowinglaw.co.uk.
We look forward to hearing from you soon.
