Gladstone Brookes are re-contacting our successful PPI customers and here’s why…
From 2016 all PPI refunds were subject to a tax deduction at source. This was taken before you even received your pay out.
However, very often Tax should not have been taken with many people qualifying for tax exemptions that should have been applied; meaning many people have unwittingly paid MORE tax than they should have.
Gladstone Brookes are now re-contacting our customers to raise awareness of this issue and offer a service that can apply these exemptions to PPI Tax and obtain refunds for tax that was taken unfairly!
What is PPI tax?
Let’s look at what makes up a PPI refund. These are made up of 3 elements generally:
- First, the refund of the actual PPI that was paid.
- Second, if an extra loan was placed on the initial product to cover the cost of the PPI then the interest of this loan would be paid back.
- Thirdly, the statutory interest (normally 8%) that was paid since you took out the PPI; this is based on the combined figure of the two above points.
It is the third part that what was subject to tax and this figure is treated by the HMRC as interest that you would have received on any savings and is therefore taxable. Most lenders would have deducted basic rate 20% interest from the 8% interest that you received and sent to straight to HMRC.
Is this fair?
The simple answer is no. From 2016, HMRC allowed individuals to earn savings interest for each specific tax year based on which tax bracket that they were in.
- Basic Rate Taxpayer (20%): earn between £12,571 and £50,270 then you can earn £1000 in interest each year tax free.
- Higher Rate Taxpayer (40%): earn between £50,271 and £150,000 then you can earn £500 in interest each year tax free.
- Highest Rate Taxpayer (45%): earn over £150,000 then you are not allowed any personal savings allowance.
Even FoS & the FCA confirm that:
If you don’t earn enough – “You can usually claim back the tax” on PPI Refunds.
https://www.financial-ombudsman.org.uk/consumers/expect/tax
You only have to pay TAX on PPI refunds “if you are already a taxpayer or if this takes you above your personal savings allowance for the tax year.”
https://www.fca.org.uk/ppi/faqs
So, what do I do?
You can approach HMRC and complete their forms yourself. However, even Martin Lewis, the consumer champion has advised that:
- “HMRC makes these (Tax rebate) forms pretty complicated“
- “I wish the form (to claim PPI TAX) were simpler”
- “it may be a struggle for those who normally just pay tax via PAYE (ie, the payroll).”
We could help….
If you’ve now realised that you didn’t need to pay tax, and you want your refund on this then Gladstone Brookes can help!
Our process is simple and straightforward, and Gladstone Brookes can put you on the path to you get back what is rightfully yours.
Gladstone Brookes have reached out to our existing customers to offer them help them to reclaim their tax You may have already received our communication either in the form of an email, SMS or phone call.
How do I know that it’s genuinely Gladstone Brookes??
- Gladstone Brookes will only call you from 01925 321332 to make contact about the R40 journey.
- You can call Gladstone Brookes on any of the numbers that you may have for us to confirm the call.
- You can contact us on any of our Social Media pages or email for us to confirm that it is Gladstone Brookes making contact with you.
What do I need to complete a Tax Refund via this process?
Don’t worry if you do not have all of the details below available when Gladstone Brookes contact you as these can be obtained at a later point if need be.
- PPI details-Gladstone Brookes has all of this information for you
- National Insurance Number
- Annual Salary figure for the tax year that you received your PPI offer (if applicable)
- State Pension figure for the tax year that you received your PPI offer (if applicable)
- Private Pension figure for the tax year that you received your PPI offer (if applicable)
- Taxable State Benefits for the tax year that you received your PPI offer (if applicable)
- Taxable Interest Payments for the tax year that you received your PPI offer (if applicable)
Key Points to remember
- Gladstone Brookes will NEVER ask for upfront payments, card details or to urgently transfer money to start your refund service.
- Gladstone Brookes will NEVER threaten you or insist that you provide your National Insurance Number over the phone.
- This rebate service is not a scam and is a genuine way to reclaim the PPI tax back that was deducted from your refund.
Scam Awareness
We are aware that there are a number of scams that mention the HMRC and we want help raise awareness of these to protect our customers. Below are some of the most prevalent HMRC scams recently circulating:
- HMRC is filing a lawsuit against you. Press ‘1’ to be connected to a caseworker.
- Your National Insurance Number has been compromised or is invalid. Please confirm your personal details so that we can provide you with a new National Insurance Number.
- You owe up to £500 in unpaid tax and will be arrested in a couple of hours if you do not pay immediately. Make the payment in vouchers or prepaid cards for Amazon or Google Play.
- Your National Insurance Number will be terminated and your assets seized due to unethical financial transactions. Ignoring this final warning may lead you to legal troubles. Press ‘1’ for more details.
- You are being charged with tax fraud. In order to avoid court action, you will need to send a copy of your passport and pay over £1,000.
What should I do if I think that I have been part of a scam?
This should be reported to Action Fraud on their website www.actionfraud.police.uk/ or call them on 0330 123 2040.
If Gladstone Brookes has been mentioned on the call that you are concerned about, please contact Gladstone Brookes on 01925 320932 or email us at [email protected]. You may also wish to contact Action Fraud and/or the policy if you have been a victim of any form of fraud.