Have you received a PPI Refund? Your Financial Institution or PPI Claims Company may still owe you a tax rebate
Have you received a refund for a PPI settlement in the last 4 years? Many consumers who received a refund had tax automatically deducted from their total, and as such, will be entitled to a full or partial refund.
Automatic deductions for tax could have been made from statutory interest that has been paid out in addition to the PPI refund amount and interest from any extra loans added by the bank that were charged on top of the original loan.
This will show on the settlement letter from the financial institution who has (or has yet to) pay out the settlement for PPI. Consumers can only claim back four tax years retrospectively. However, this period starts from the year that the settlement payment was made and not the year that the original credit agreement was taken out.
In real terms, this means that if your settlement for PPI was paid in or after the 2015-16 tax year, then you may be entitled to a refund if you were/are within your tax allowance on savings and investments.
To request that HMRC review the tax paid, a R40 form should be completed and submitted directly to HMRC. This will request specific information in relation to the tax year in question, so ensure you have your documents to hand. This may be your P60 form for previous tax year information or payslips (particularly if the claim is in relation to the current tax year).
The quickest and most straightforward way of doing this is by registering on the gov.uk website. You can do this HERE. The printed form can be somewhat time-consuming to complete, but online applications can be done in minimal time if you have all of the relevant information to hand.
HMRC will review the information supplied within 15 days and reach out with regards to an outcome. You can track the progress of your submission by checking your account online.
Although we are unable to advise directly on any individual financial products, consumeradvice.scot are able to offer free and practical advice on a number of consumer issues. You can contact consumeradvice.scot on 0808 164 6000. We are open 9am-5pm, Monday-Friday.
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