Tag: PPI Tax Claim

Can I get a PPI tax refund if I’m Self Employed? Learn how!

Posted on April 22, 2020 by - Blog, PPI Tax refunds, Uncategorised

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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?

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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.

Want to learn about other topics?

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 info@gowinglaw.co.uk. 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!

Do you want to claim PPI tax back? Here’s how it works!

Posted on April 20, 2020 by - Blog, PPI Tax refunds, Uncategorised

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Listen to our PPI Tax Claim recording by clicking the link below:

Your PPI tax refunds claim doesn’t have to be complicated. You’ve probably heard the words PPI tax thrown around by different law and repayment firms. But how much do you actually understand about PPI, and in particular, PPI tax reclaims? Here at Gowing Law Solicitors, we want to help you understand everything you need to know about PPI. We’ll look all the way back to how it came about in the first place. All the way up to why you may be owed tax on your PPI pay out, and how a top PPI law agency in Manchester, like Gowing Law Solicitors, can help you. Let’s get started with the basics of mis-sold PPI tax.

What is PPI?

Before we explain why you may be able to claim money on a PPI refund, it’s important that we start with the basics of PPI. PPI stands for Payment Protection Insurance. It was usually sold with products that included a repayment, a payment plan or some form of debt. Over 64 million PPI policies were sold to people in the UK between 1990 and 2010, a lot of them having been unfortunately mis-sold. Take a look at this video created by the FCA (Financial Conduct Authority) to give you a basic understanding of PPI and how it could of affect you:

The main thing you need to know about PPI is that it was a policy sold along with loans, credit cards and other “financial borrowing” agreements. It was to ensure that payments could still be made if the borrower was unable to pay back the money due to sickness, unemployment or any other type of emergencies.

Payout Problems

One of the problems with PPI came from the fact that it provided significantly less pay-out than what was owed by the borrower’s loan. However, the real issue came from when many PPI policies did not fit the policy owner. For instance, a lot of people taking out loans to start up a freelance business did not require this policy- after all they were already self-employed! That’s why complaints were raised and policy holders began to demand their money back.

If you were interested in getting a PPI refund with the help of a trained PPI claims solicitor, like those from Gowing Law Solicitors, and were successful, you could find you would be rewarded with one of the following:

infographic-successful-ppi-claim

Please keep in mind that it is likely that your pay-out will depend on the amount of money that went into the original PPI. If you were forced to spend more money on the PPI then you will be reimbursed for it. Discuss this with your lawyer (from Gowing Law Solicitors) to make sure you can estimate accurately how much you are owed before you make your claim.

Tax and PPI Pay-Outs

Now, for anyone who had been mis-sold PPI, clearly people were interested in getting their money back on this policy. It had no use for them, however this was not the only thing that was a problem with the PPI policy in general. PPI was taxed.

That is why when people received a refund for their PPI, they were surprised to see that they did not receive as much as they expected- namely because tax had been taken away from it. It’s not surprising that claimants were quite upset.

So, you may be wondering why your PPI was taxed in the first place. Well the truth is…

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But don’t worry! There is hope for you to get this tax back. This approach to refunding the PPI claim is rather simplistic. It assumes that you are still paying off existing debts or that the tax has gone towards the cost of the loan in the first place. Not all of these conditions apply to all people and this can give you some legal “wriggle room” to make a claim. However, there are other reasons why you may have a PPI tax refund claim.

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Could you be owed tax from mis-sold PPI?

When there is a PPI pay out, most firms will have it dedicated a 20% rate. However, 6th April 2016 introduced the Personal Savings Allowance (PSA). This allowance made it easier for tax payers to receive what they were owed. To put it simply:

  • Basic Rate Payers: 20% – Can earn up to £1,000 a year of savings interest tax-free
  • High Rate Payers: 40%– Can earn up to £500 a year, again tax-free
  • Top Rate payers: 45%– Cannot earn anything

One of the best things about these rates is that PPI payments still have the 20% tax automatically taken away before you receive it. If you haven’t earned over your PSA in the same year you managed to get a repayment for your PPI claim, like most people, there is a high chance that you can actually get it back.

But am I really eligible to receive a PPI tax refund claim?

You may be worried about reclaiming your rightly owed PPI tax because of your job status, expatriate, whether or not you pay tax or even due to the fact that you are self-employed. Honestly though, these are not reasons that should worry you. If you have previously taken out sort of monetary contract and are a British tax payer, there is a chance that you could have been unintentionally paying for PPI. It is worth talking about it to a trained PPI specialist.. This is why we urge you to get in contact with Gowing Law Solicitors today. That way we can try our best to help you get your money back.

How much can you get from mis-sold PPI?

Okay, so this is where we have to get our maths hats on. Remember that this depends entirely on your own personal situation and the amount of money that went into the tax on your loan. Even if you are self-employed, you could get a lot of money back from your PPI tax. However, before you figure out how much you are owed keep in mind that:

  • PPI pay outs still automatically have around 20% of tax deducted from them.
  • If you have not earned over the PSA in the year that you paid back the PPI claim, you can pay it back.

Being a combined taxpayer and having a complete interest tallied from your savings and PPI statutory interest should mean that you are due all of your tax back. However, if you have been forced over your PSA then you should only have to pay tax that corresponds to how much you have gone over it by. In order to demonstrate this point, have a look at Roger Rebates’ PPI tax below:

Example Case: Roger

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Claim Amounts

Let’s talk about how much you could actually get from a PPI tax refund claim.

Make sure to think about the size of the loan. You can also think of the year it was taken out and how big your PPI pay out is. A good example of how you can figure out how much you can earn is explained by Martin Lewis, a PPI expert. In his interview with ”This Morning”, he gave these examples:

“If you took out a PPI 5 years ago and received a £1,000 pay out, you can receive around £60 tax in return. However, if you took it out 10 years ago then you could receive around £100.

However, if you were given a large £15,000 PPI pay out and took the loan 5 years ago, you could earn around £900 tax in return. Are you thinking even larger? Well, for 10 years, then that tax return could go up £1,470!”

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IMPORTANT NOTE: The Deadline

PPI tax claimants for 2015/2016, you may have missed the claim deadline. This is because you can only backdate PPI tax by four tax years (aka. 6th April 2015 and 2016), meaning the deadline was on the 5th April 2020. However, do not worry! Our PPI solicitors can still help you with your case. Just make sure you have a reason why your claim was late. You may also be allowed to claim if you are a non-tax payer who can use their personal savings allowance.

For more information on this, please contact Gowing Law Solicitors. We would be happy to advise you on the best way forward.

How do you claim any mis-sold PPI tax returns?

Whether you’re after help with your PPI tax, it’s important to have your claim checked by a specialist. Yes, you can do it on your own, contact HMRC or fill out a R40 form to settle your tax, but do you really want to do this on your own? PPI tax returns are complicated. It’s always best to have help if you want to reclaim tax money. Do yourself a favour and contact Gowing Law Solicitors for the best advice possible.

Gowing Law is one of the top PPI tax reclaim solicitors in Manchester. That’s why we have simplified the process and have created a PPI claim form for you to fill out. It includes spaces for your personal information, claim information and our damages agreement. Fill out the form with as much detail as you can. The more information we know about your PPI tax reclaim, the higher chance of a positive outcome. They understand the layout of the R40 or R43 and will help you get your entitled tax. Make sure to take a quick look at the damages agreement before you begin your journey with Gowing Law Solicitors. That means you will be fully prepared to work alongside our PPI tax reclaim specialists.

Learn more about Law Topics!

Gowing Law Solicitors will always do their best to ensure their clients are fully educated about different law issues! That’s why we have decided to create a series of blogs that are detailed but simple. That way they can be accessible for everyone. Check out our latest blogs on immigration, including topics like the basics of immigration and how you can decide on a visa. We hope you enjoy our blog series.

Want more information? Contact us now!

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PPI tax claims can be complicated. So, why not simplify the process and have one of our experts handle your claim? All of our lawyers are extremely friendly and would be more than happy to assist you. If you have any questions about PPI tax claims or any other service we provide, please call us on 0800 041 8350, email us at info@gowinglaw.co.uk. or even fill out our contact form. You can even fill out our PPI tax claims form to simplify the process!

We look forward to hearing from you soon!