PPI tax reclaims can be difficult to get your head around, especially if you are self-employed or run your own business. Like many other people in your situation, you are probably angry at the fact that you have been mis-sold PPI. But worse still, now that you have received your return, you can see that some of it has been taken away due to tax. As someone who is self-employed, or is a freelancer, you are probably thinking to yourself: “This is my money! Why do I need to pay any sort of tax on it?”
Pennies are precious, especially if your business is small. That’s why it can feel like a victory when a freelancer’s PPI tax refund claims are successful. Whether you are a large business or you, as a hard-working freelancer, are a business in yourself, Gowing Law Solicitors can help you successfully receive the tax that you are owed from your PPI. Here is what you need to know in order to get started!
Can Self-Employed Workers Receive PPI tax refund claims?
Before we jump into some of the more fiddly parts of PPI tax refund claims, let’s start off by address the crux of this blog. You are self-employed and are wondering if this may prohibit you from making a claim. So, let’s answer the question quite simply: Yes, you can reclaim your PPI tax.
In 2019, Martin Lewis, from Money Saving Expert stated that over £36bn has already been reclaimed so far by individuals who were willing to find out how PPIs worked. Not all of these people were from a stereotypically large business background. Think of it this way! You are a tax payer, therefore you are entitled to what you are rightfully owed if you have overpaid a fee. Between 90% people don’t even know that they have been taxed when they certainly should not have been, let alone that they can reclaim the tax back.
That’s why you should take a moment to fill out our PPI tax claims form! It’s simple to use and can get you in contact with our PPI tax claim specialists in no time:
What are PPI tax refund claims?
So, let’s start you off with a little information on how PPI tax refund claims actually work. Take a look at this video where Martin Lewis explains to the hosts of “This Morning” exactly what happened with PPI and why you, even if you are self-employed, could be owed thousands:
If you don’t have much time to watch the video. Here is what you need to know:
- PPI (Payment Protection Insurance) was used as an insurance policy in the event that you were sick or unable to keep up with payments. It could cover you for at least a year, but it could only pay you significantly less than what you owed.
- PPI was significantly mis-sold around the country, sometimes with claims that it was compulsory or it could have been added to your policy without you knowing.
Self-employed tax returns, when it comes to PPI, could be due to the fact that you were given a policy that was not suitable for you. You are employed by yourself, yet you were given cover for unemployment. That’s why it is crucial to check whether or not you are owed a PPI tax repayment by simply checking with the bank (if the policy was made within the last six years), or by going to speak with a well-trusted PPI claims management specialist, like Gowing Law Solicitors.
I am self-employed, so how much am I owed?
Now, this is a little more complicated and depends on how much you put in in the first place. There are three potential payment outcomes, these are:
- The full refund of any PPI you paid on top of your previous payments
- Depending on whether (or not) the bank placed an additional loan on your original payment plan, in order to pay for the PPI, you will get back the interest of this loan.
- A statutory interest (normally at 8% per year) is placed on the payment for each year since you started paying for the PPI.
You should be able to claim all of the tax back if you were a non-taxpayer in the year your PPI was paid out. If you were a tax payer at the time of purchasing your PPI, you may fall into one of these categories:
Whether you are a freelancer or you work for a larger company, you will need to think of the amount of refundable tax. The majority of banks that refund PPI do not know precisely how much tax you pay. That’s why you will find that most of them will assume that you fall into the basic category (as seen in our diagram) and will only deduct 20%. This means that most basic rate and even non-tax payers may even be able to reclaim on the governments tax-free savings allowance. The PPI tax claim specialists at Gowing Law Solicitors will be able to help you calculate how much you are owed. Just keep in mind that if you are paying a high rate of tax, this may give you an additional tax to pay on top of it.
Self-Employed PPI Tax Claimants: R40s are for you as well!
One thing that should be made clear to all claimants looking for a PPI tax refund, self-employed or otherwise, is that everyone needs to use the same type of R40 claims sheet. Gowing Law Solicitors would highly recommend that you allow our skilled PPI tax claim specialists to handle your claim. However if you have already filled it out and sent it off, do not panic! Whilst working with our team of savvy PPI tax reclaim experts will guarantee you fantastic results, if you have filled out the sheet to the best of your ability, and have left a note (aka. a covering letter) that you were unsure about certain areas of the form, then you should be okay. However, keep in mind that your claim does need to be filled out before the 4th year of when your PPI was originally purchased.
What do you need to make your claim?
As a self-employed business owner requesting a PPI tax reclaim, you need a strong case to ensure the best outcome. When you have spoken with one of our highly-trained solicitors, you will want to do the following:
One important fact that you should know is that in some circumstances, banks may automatically take tax off you. This should be noted in the breakdown of your refund. However, in a lot of cases, banks will most likely not do this. That’s why it’s important to check the details of your paperwork, especially if you are self-employed. This means you need to let HMRC (HM Revenue & Customs) know.
Remember, if you have any doubts about your claim, you can contact HMRC or Gowing Law PPI specialist for advice. We would be more than happy to help you.
Can I get a PPI tax reclaim from abroad?
Not all UK-citizens live in the UK. After all, many people have seen financial opportunities arise from other countries. So, what of these freelancers and self-employed business owners? You are probably wondering “if they live abroad, why would they be eligible for a UK PPI tax return?”
Well, it’s pretty simple if we think it out this way:
You may have had the tax taken off you whilst you were still in the UK.
Let’s put this another way:
Even if you are working abroad freelance, PPI tax refund claims should be easy to obtain. Gowing Law Solicitor’s specialists should be able to help you by ascertaining whether (or not) you have a claim. We can also make things easy for you by filling out the R43 tax payment form.
Let Gowing Law Solicitors help you make a PPI tax reclaim!
Our professional Manchester law solicitors do not mind if you are self-employed or are working for a larger company. If you think that you are entitled to a PPI tax reclaim, we will help you get what you deserve. Our solicitors will act on your behalf and ensure that you receive results in a timely manner.
Start your journey by filling out our PPI tax claims form. It’s easy to use and will provide us with the information we need to get started on your case. The form includes information on your personal and claims details. Just remember to read our damages-based agreement. That way you know precisely how we will handle your claim when you work with us.
The main purpose behind filling out this form is to simplify your claims process. We understand that you have a lot of information that you need to let us know about. So, if you write it down in this form then we will help you receive what you are owed.
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Gowing Law Solicitors is here to answer all of your law questions. That’s why we aim to update our blog with detailed content about the world of law. Why not learn about the basics of immigration and the different categories of visas? We aim to simplify law jargon to make it accessible to everyone. Check out our additional blogs for more information.
Any additional questions?
We are one of the top PPI tax reclaim law firms in Manchester. When you come to Gowing Law Solicitors with your claim, we will make sure that it is handled professionally. If you need any more information, please feel free to contact us! You can call 0800 041 8350, email firstname.lastname@example.org. or fill out our simple PPI reclaim tax form. If you have any questions then please use our contact form.
We look forward to hearing from and handling your PPI tax reclaim case soon!