Have you received a successful PPI payout in the last 5 years?

Claimed PPI?

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Did you make a PPI claim? If you did, there's a good chance you are entitled to a refund on the claims tax. Fill out our form to find out if you can claim back hundreds of pounds. It's no win no fee!

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PPI Tax Refund

Have you made a PPI Claim?

Make your no win no fee claim today.

What are PPI Tax refunds?

If you made a successful Payment Protection Insurance (PPI) claim, then you may not be aware that your total claim would have been made up of not only a refund of your PPI premiums, but also interest on those premiums. The interest recognises that you were deprived of the money you would have had if you hadn't paid your PPI premiums in the first place. In effect, it counts as savings interest that you might have otherwise earned.

That interest is usually set at 8% and is known as Statutory Interest.

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Before your final PPI claim was paid, your PPI provider would have looked at the interest portion of your refund and taxed it for you regardless of whether or not you should have paid tax on it. Your final PPI refund would have been your PPI premiums plus the interest (after they had deducted tax from the interest).

The interest received on your PPI claim was treated as savings income, that's why it would have been taxed. Basic rate tax would then have been deducted at source on the interest part of your PPI refund before it was paid to you. The tax would have then been passed to HMRC on your behalf.

The problem, though, is that many people were not liable to pay the tax on the interest. You wouldn't have paid tax on your PPI refund if:

  • The year you received the refund, your total taxable income for the year was within your tax-free personal allowance.
  • The total interest you received on your savings during the year of your refund was below the Personal Savings Allowance (£1,000 for basic rate tax payers and £500 for higher rate tax payers).

If any of these applied to you, then it is likely you have paid tax when you should not have done so. You can claim this tax back from HMRC.

How do I apply for a PPI Tax Refund?

All you have to do is complete our application form and one of our team will contact you to complete your application. It’s as easy as that.

You can make a claim for any PPI refunds received after 5 April 2018. You cannot go any further back unfortunately.

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Frequently asked questions

Is HMRC really refunding PPI tax?

Yes. Since 2016, due to a change in the law relating to how interest earned on savings income was treated by institutions such as banks and lenders, many people who received PPI tax refunds were deducted taxed incorrectly. HMRC understands this issue and is happy to return the incorrectly deducted tax, but you have to make an application for the PPI tax refund.

How do I find out if I am eligible?

Complete our form and we will assess if you’re eligible to make a claim. If you are eligible, one of our team will contact you to begin the process.

Is the interest I receive compounded?

No. Interest is paid on a flat calculation of 8% per year based on the amount of your refund. The interest is not compounded year on year.

What is a Personal Allowance?

A Personal Allowance is the amount each person can earn in the tax year before any tax is due. When your employer pays you, they will allocate 1/12th of your allowance to each payroll they pay you. As the tax year progresses they will assess your earnings so far for the tax year and the total tax free proportion to that date and recalculate your tax up to the date of the payroll. For example, if you ceased working during the year or didn’t work for the entire year, you might be due a refund as you wouldn’t have received the remainder of your allowance.

What is the Personal Savings Allowance?

Historically, all interest received was taxed by the banks and other financial institutions before it was paid to you. In 2016 this changed. Interest is no longer taxed before you receive it. You can receive up to £1,000 of interest if you are a Basic Rate (20%) tax payer before any tax is due. For Higher Rate (40%) tax payers this is just £500. If your earnings take you into the Additional Rate (45%) tax bracket then you have no Personal Savings Allowance at all. Savings in tax-free accounts like Individual Savings Accounts (ISAs) and some National Savings and Investments accounts do not count towards your Personal Savings Allowance.

Can I reclaim tax on PPI refunds before the 6th of April 2018?

No, unfortunately not. You can only reclaim PPI tax as far back as four tax years (plus the current one). As we’re now in the 2022/23 tax year, that means the furthest you can claim for a refund is the 2018/19 tax year. PPI Tax claims can no longer be made on any PPI refunds received on or before 6 April 2018.

How much will I get back?

It varies depending on the size of your PPI refund and when you received it.

Can I claim a PPI Tax Refund if I am self-employed?

Yes, but you would need to apply for your tax refund as part of the annual returns you file each year with HMRC. This means you cannot claim through us, but you can claim through your accountant

How long does a PPI tax claim take?

Whilst we cannot accurately predict the time a refund will take, it is usually expected to take between 6-8 weeks to get a refund from HMRC.

Who Can Claim a PPI Tax Refund?

You can make a PPI Tax Refund claim if any of the following apply to you:

  • You received a PPI Payment on or after the 6th of April 2018
  • You are not an Additional Rate tax payer paying 45% tax.
  • You have not been declared bankrupt, or are in a debt management scheme.
  • You are not self-employed (You can still claim of you are self-employed, but you would need to apply for this tax refund as part of your annual returns).
  • You have not already claimed your PPI Tax refund

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