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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.

PPI tax refund button

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!

PPI reclaim top tips

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.

deadline for PPI taxes

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

PPI tax claim payout gif

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.

PPI tax reclaims eligibility

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:

PPI tax reclaims twitter post

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:

PPI tax claim infographic

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!

PPI tax refund button

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 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?

law blogs button

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 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.

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Gowing Law is law firm based in Manchester but offer their legal services nationwide. We specialise in the personal injury claims and our team of solicitors have the experience and expertise needed to handle your case and help you through the claims process.

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