If you’ve received a PPI payout in the UK, you may be entitled to a tax refund on the amount deducted from your payout. In this blog post, we’ll explain how PPI is taxed in the UK, who is eligible for a refund, and how to claim it.
How is PPI taxed in the UK?
Since PPI payouts are considered a form of income, they are subject to taxation in the UK. The tax is deducted automatically by the financial institution that pays out the PPI claim, and the amount deducted is based on the recipient’s tax code.
However, many people have been overpaying on their PPI tax, as the lump sum nature of the payout means that the tax deducted is based on the highest rate of tax that the recipient is likely to pay. This means that individuals who pay a lower rate of tax are entitled to a tax refund on the excess paid.
Who is eligible for a PPI tax refund?
If you’ve received a PPI payout in the last four years, or if you receive one in the future, you may be eligible for a tax refund. This is because, since April 2016, taxpayers have been able to earn up to £1,000 a year tax-free on their savings, which includes statutory interest on PPI claims. As a result, most people who have paid tax on PPI payouts since then are entitled to some money back.
How to claim a PPI tax refund?
Claiming a PPI tax refund can be a complicated process, but with the help of a specialized agency like then.tax, the process is simplified. Simply provide us with the necessary details about your PPI payout, and we will work to reclaim the excess tax paid on your behalf.
At then.tax, our aim is to ensure that individuals receive their full PPI refund amount by reclaiming the excessive tax paid. Our specialized service helps you claim back your overpaid PPI tax, ensuring that you receive what you’re entitled to.
In conclusion, if you’ve received a PPI payout in the last four years, or if you’re due one in the future, you may be eligible for a tax refund. At then.tax, we can help you reclaim the excess tax paid and ensure that you receive your full PPI refund amount. Don’t let excessive taxes get in the way of your financial compensation – contact then.tax to reclaim your rightful PPI refund today.