PPI Tax Refunds
Whilst the PPI deadline may have passed, we are currently contacting our customers that have had successful PPI claims as they may be entitled to a tax rebate for the tax paid on the redress recovered for settled claims.
What is PPI Tax?
A PPI refund was made up of 3 elements:
It is the third element that is subject to tax. Most lenders deducted this tax at the basic rate of 20% automatically prior to customers receiving their refunds.
The reason tax was deducted by lenders is because the statutory interest was paid to return you to the position you would have been in had you not been mis-sold PPI. Therefore, counting as savings interest.
Why could I get a rebate on the tax that was paid?
On the 6th of April 2016, the personal savings allowance was launched, which allows most taxpayers to earn up to £1000 a year of savings interest tax free. PPI pay-outs automatically had 20% tax deducted without checks on personal savings allowance – which now means many customers are entitled to a tax rebate.
Who could get a PPI tax refund?
You can’t claim for a rebate if your PPI pay-out was before 6 April 2016.
If your pay-out was after 6th April 2016, you can only go back 4 tax years, meaning the furthest you can go back is the 2017/2018 tax year.
What happens next?
We will be contacting our existing customers from the telephone numbers 01925 598026 and 01925 321332 to discuss this further or call us today to find out more.
Our fulfilment partner’s fees are 30% + VAT a total of 36% of the gross amount of rebate received on your behalf. If you are successful but the rebate is used towards any arrears you may owe then you will need to pay the fees from your own funds. But if you are not successful there will be no charge for this service.
What will I need?
- National insurance number
- Annual salary for the year you received the pay-out
- State Pension and amounts if applicable
- Taxable state benefits and amounts if applicable
- Private pensions and amounts if applicable
- Other taxable interest and amounts if applicable
You will also need other information that Gladstone Brookes will provide you with:
- Date(s) of PPI Offers
- Amount(s) of PPI Offers
- Your Gladstone Brookes reference number(s)
Call us on 01925 321332 to find out more