When a lender sends you a PPI refund, an element of this will be statutory interest, from which most lenders will have deducted tax automatically at the basic 20% rate before you get the money.
However, if you are a non-taxpayer then you have the right to claim all of the money back from HM Revenue & Customs (HMRC).
In April 2016 the personal savings allowance was introduced by the government, allowing taxpayers to earn up to £1,000 a year tax-free on their savings – which includes the statutory interest paid on PPI claims which have 20% automatically deducted.
It’s no refund no fee so you’ve nothing to lose!
Who Can Claim a PPI Tax Refund?
If ANY of the a below apply you may be due a PPI Tax Refund
– You received a PPI Payment after April 2016
– You earn less than £50000
– You have not been declared bankrupt, or in a debt management scheme
– You have not already claimed your PPI Tax refund
– You are not self-employed (Self-employed people would need to apply for this tax refund as part of their annual returns however if you have not already done so, we may be able to help with this)
To claim you will need to know the tax year you received your PPI payout and the total amount of tax deducted from your payment. This information should be on the letter from your lender.