PPI tax claims are essentially for people who have not received the full amount of their entitled PPI pay-out. You may have claimed for your PPI but will have received a smaller sum of money than you originally expected. This is because 20% of your pay-out may have been automatically deducted due to tax! In certain circumstances you can claim this back from HMRC. We are currently claiming back tax for clients who have already tried to claim it back themselves or for people who don’t know they can claim. That’s why it’s a great advantage to have the help of a professional tax claim lawyer.
Gowing Law is here to help you with your claim and to answer any additional questions you may have about PPI tax in general. We understand that PPI tax claims can get complicated, therefore it is useful having an expert to talk about the top 5 common questions you may have about PPI tax reclaims. You can also visit our PPI tax page to begin your journey with our lawyers:
The Basics of PPI
Before we jump in to all of the common queries you may have about PPI tax claims, it’s important that you understand a little bit about PPI in general. After all, if you understand the basics, it will make it much easier to understand why PPI tax was charged in the first place.
PPI was usually sold alongside:
- Credit Card Schemes
- Loans
- Mortgages
It was used to make sure that if you got sick or injured, you still had emergency funds available to help you pay back what you owed. However, the PPI that was sold may not have actually been helpful to the person who bought it.
Therefore, if someone was:
- Self-employed;
- Pressurised into buying PPI;
- Living abroad;
- Or buying PPI believing it was compulsory
In the last 12 years, they could have claimed for compensation for these financial losses. If they wrote in to their PPI provider, they could have received a pay-out. However, the majority of people did not get the full amount they were owed due to higher tax rates being charged. This is where your PPI tax claim comes in to play.
What is PPI tax?
If you did make a successful PPI compensation claim, you most likely received a pay- out. So, you may have expected a certain amount in return. Now, a PPI pay-out is made up of three main elements. These elements are designed to get you back to your original financial position if you had not paid for PPI in the first place. They are:
- A refund of the PPI you initially paid in.
- Additional loans added to your PPI payment by banks to help pay it off. This should have added interest to your initial payments.
- Statutory interest that was added to both sums that were added yearly. This should be at 8%.
Out of these three categories, only statutory interest can actually be taxed. All of these categories are intended to get you back to your original financial position. However, if you go over your original amount, it can be seen as adding interest. Take a look at the statement you received when you were sent your PPI pay out. If it has had the tax taken away from it then this should be noted in the statement.
You may have automatically had 20% of this tax deducted from you original pay-out. But don’t worry, Gowing Law Solicitors is here to help you understand exactly what you could claim back from HMRC.
The 5 most common questions asked about PPI tax compensation claims
As we said before, PPI tax compensation claims can be very complicated. This means that when you come to our solicitors for help, we can get you back an amount of tax that was over paid. Take a look below to see if your question has been answered. If it hasn’t then please feel free to let us know by emailing info@gowinglaw.co.uk. We would be more than happy to help you.
1. How long will it take to make a PPI tax claim?
Normally, you will have four years to make a PPI tax claim. This will start from the end of your regular tax year. Gowing Law Solicitors has managed to help people all over the UK with PPI tax refunds, even if they have already been rejected by HMRC for a pay-out. After you have submitted your details to us, it usually takes around 6-8 weeks to receive your tax refund. Your solicitor will keep in contact with you about your compensation and will let you know if there have been any delays or complications. That way you know precisely what you need to do next.
2. How much money could I receive?
When we estimate how much you could be owed, it is based on your own personal circumstances and how much money was over paid. Most of the time the deduction will be around 20% and will depend on your own personal savings allowance (PSA). If you did not go over your PSA then you are definitely owed tax back. To put it simply, your rates may change the amount you are owed:
3. How long can I take to make my claim?
As you do have a time limit on your PPI tax reclaim, of around 4 years, we would recommend that you come to Gowing Law as soon as possible. Unfortunately, you can no longer claim for 2015/2016 as the deadline did pass for the tax year in April. It only takes a few minutes to fill out our self-assessment form, so what’s stopping you?
4. Can I claim if I am living abroad?
Of course you can! If you were mis-sold PPI tax whilst living in the UK, and then went abroad to work as self-employed or perhaps to open a new business, you can still claim this PPI tax back. This is because you were still a UK resident when you originally took the PPI out. Therefore, you are legally entitled to the money that is owed to you. All you have to do is get in touch with a trained solicitor to help you fill out the paperwork.
5. How will Gowing Law Solicitors help with my claim?
Gowing Law Solicitors is one of the top PPI tax compensation lawyers in Manchester. We help people all over the UK to get the pay-out that they deserve. Did you know that we have already won over £10,000 of rebates for our clients? In this difficult time, it is good to be able to get this pay-out so it can be saved for an emergency or a rainy day. Our clients have been extremely happy with our services. We get their compensation to them in a timely manner and use our expertise to help them with their claims. We can do the same for you!
Our lawyers are extremely experienced and would be happy to share their knowledge with you. We have even simplified the process by creating our own self-assessment form. That way you can get all of the key information of your PPI tax reclaim sent to us before you even get in touch with one of our solicitors. But don’t worry, our trained lawyers will guide you through the PPI tax pay-out process. That way you will never be left in the dark about where you stand with our law firm.
Gowing Law is ready to get your PPI tax compensation!
All of our solicitors are available to work with you on your PPI tax reclaim. All you need to do is get in contact with us. We can work with you remotely to ensure that you are kept safe from Covid-19. So, feel free to come to us for advice and even a helpful consultation. If you do decide to work with us, we can offer you our services on a “no win-no fee” basis. That means there is no risk you would lose money or pay any hidden fees. We will always be upfront about all of our costs.
Get in touch now by calling Gowing Law Solicitors on 0800 041 8350. You can also email us at info@gowinglaw.co.uk or use our direct messenger on our contact page. A member of our team will be in contact as quickly as they can to answer any additional questions you may have about PPI tax compensation claims
Read more about PPI tax claims
If you want to learn more about PPI tax claims, you should scroll through more of our blogs! We keep our blog updated on a wide range of articles all about financial mis-selling cases. This includes mis-sold pensions and mis-sold mortgages. We also talk about RTA compensation, work accident claims and much, much more. So make sure to keep an eye on our blog to see what we write about next.
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