Did you know that you can get a PPI tax Refund?
What many people are unaware of is that they had paid 20% tax from their compensation payout, which they can claim back.
For example:
Ellen Doe was a 20% taxpayer in 2018. For her, getting a PPI refund was already a win! What she did not realise was that she was charged 20% tax on that refund.
This is how we can calculate how much refund we can get:
- She Earned £200 interest on her savings in 2018.
- She got a PPI payout of £1500
In this case, her total interest for the year was £1,150 – £150 over her personal savings allowance. Therefore, she should only pay 20% tax (£30) on the £150 over her personal savings allowance and the rest is tax-free. As the PPI automatically had £190 tax taken off it, she is due £160 tax back.
What is a PPI Tax Refund?
A PPI tax refund is a refund from HMRC for the tax paid on PPI claims. This can happen when a PPI policy is mis-sold to an individual, leading to a financial loss. The PPI tax refund is the amount of tax that the individual has overpaid to HMRC as a result of the mis-sold PPI policy.
Who Can Claim a PPI Tax Refund?
Anyone who has been mis-sold a PPI policy and has paid tax on the resulting financial loss can make a claim for a PPI tax refund. The individual must have paid tax on the amount they received from their PPI claim in order to be eligible for a PPI tax refund.
What is the Process for Claiming a PPI Tax Repayment?
The process for claiming a PPI tax refund starts with completing Form R40 from HMRC. This form is available from the HMRC website and should be completed with all the necessary information. Once the form is completed, the individual should send it to HMRC along with any evidence of the mis-sold PPI policy, such as a copy of the policy document.
How Long Does it Take to Receive a PPI Tax Rebate?
The time it takes to receive a PPI tax refund will depend on the individual’s circumstances and how quickly HMRC process the claim. In most cases, the refund should be received within a few weeks of submitting the form.
What Happens If the Claim is Rejected?
If a PPI tax refund claim is rejected, the individual should contact HMRC to find out why. HMRC may require additional information or evidence in order to process the claim, so it’s important to provide any additional information they may require.
Are There Any Fees or Costs Associated With Claiming a PPI Tax Refund?
No, there are no fees or costs associated with claiming a PPI tax refund yourself. The individual is not required to pay any fees or costs in order to make a claim. However if you use our services we do charge a percentage of the money you receive, i.e 25% plus VAT.
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