June 23, 2021

PPI Tax Reclaim – How to Claim Back Tax on Your PPI Claim

Author:

Crystal Group

“If you’ve been in an accident that was… Sorry, wrong script!”

PPI reclaim – words we’re sure you’ve been hearing for years. There’s no doubt that you’ve seen all sorts of ads that made big claims about the money you could make back with one simple process.

PPI Tax Reclaim – How to Claim Back Tax on Your PPI Claim

Did you know – if you’ve had a successful PPI claim, you could be owed tax!

If you’ve had a successful PPI claim, you’ll be aware that PPI was sold packaged with a variety of things. If you’ve ever had a mortgage, credit card or a loan, then there’s a chance that you’ve been sold PPI. What lots of people don’t know is that you could be owed up to 20% on top of what you’ve already received. 

At Crystal Group, we help thousands of people like you to recover any overpaid tax every year. The refund that you received on your PPI claim isn’t taxable, but in many cases an 8% notional interest rate was applied to your refund, which is treated as taxable income. Those who claim this interest back can make up to £1,000!

We understand that all this can be a little overwhelming – it’s a lot of information! That’s why our experts put together this guide, detailing everything you need to know about PPI tax reclaims, and what steps you need to take to get your money back.

Am I eligible for a PPI tax reclaim? 

If you’ve made a successful PPI claim during the last four years 8% notional tax rate was applied to every year that you haven’t claimed. This is designed to compensate you for the years that you’ve been without your money. There’s a strong chance that 20% flat rate interest has also been deducted from the interest part of your refund.

The tax is deducted regardless of your individual tax status. This means that many people have paid more tax than they should.

It can be tricky to know whether you’re eligible. It’s likely that you are if any of the following apply to you:

  • You pay basic rate of tax, or are a non-taxpayer.
  • You are unsure of your personal savings allowance.
  • Your pay-out was within the last four years.
  • You’re unsure if you paid tax on your financial claim pay-out.
  • You’ve had multiple successful claims.

How do I submit a PPI tax reclaim?

As HMRC don’t automatically refund tax overpayments, the ball’s in your court. You have to submit your claim and prove why you’re eligible. If you’ve had multiple successful claims, then you’ll have to submit a unique claim for each.

You’ll need to find all relevant documentation, such as policy agreements, bank statements etc. You should make a copy of every document that you intend on using, and keep them in a safe place. Even if you’re not sure whether something’s important, copy it anyway; there’s no harm in sending a little extra.

Our process requires a lot less hassle.

PPI tax reclaim with Crystal Group

And…breathe. That’s a lot to take in. While the process has a lot of moving parts, at Crystal Group we believe that getting what you’re owed shouldn’t be a faff. We’ve helped over 4,000 people file their HMRC claim process since 2020, and have recovered over £500,000. With over 12 years’ experience, we can make the process as smooth and pain-free as possible. Our process is digital and paperless. All you need to do is answer a few quick questions, Crystal will handle the rest. 

 

See how Crystal can help you

We offer a variety of claims services designed to help you get back what you’re owed. With nothing to lose, it’s always worth finding out!

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