Frequently Asked Questions
PPI Tax Refunds - FAQ
If the total interest earned from savings and PPI statutory interest is less than your personal savings allowance, you are due all PPI tax paid back. If the combined amount pushed you over the threshold, you should only pay tax on the amount above it.
You can either go directly to HMRC or you can use an authorised HMRC agent.
Tax refunds in the UK can take up to 12 weeks to be processed by HMRC with a further 5 days to 5 weeks added to receive your money.
You can claim back 4 tax years which means that you can claim back as far as May 2016. You can also claim for this current tax year and even for any future PPI settlements.
The good news is that you can submit a claim for every tax year that you received a PPI settlement, since May 2016.
2016/17 higher rate tax banding started at £43,000
2017/18 higher rate tax banding started at £45,000
2018/19 higher rate tax banding started at £46,350
2019/20 higher rate tax banding started at £50,000
If your earnings were below the levels above then you are able to get PPI tax back of up to £1,000 tax free using your PERSONAL SAVING ALLOWANCE, less any interest you receive from savings.
Simply provide authority to us to check your compensation awards.
How will it be paid.
Once your refund has been processed and we have cleared funds, we will forward your refund to you in the way of a cheque.
How much am I owed
Each case is different, based on your personal savings allowance.
Your personal savings allowance (PSA) is a tax-free allowance that lets you earn interest on your savings without paying tax on that interest. The allowance you get depends on what rate of income tax you pay:
- Basic-rate (20%) taxpayers:can earn £1,000 in savings interest per year with no tax
- Higher-rate (40%) taxpayers: can earn £500 in savings interest per year with no tax
- Additional-rate (45%) taxpayers:£0 – they do not get an allowance.
Yes – If you were a non tax payer then you shouldn’t have paid any tax.
That’s fine, if we carry out the application process for you then we will obtain the relevant figures.
Marriage Allowance - FAQ
The marriage allowance allows an individual to transfer 10% of their personal allowance (£12,570 in 2021/22 so the amount transferred is £1,260) to their spouse or civil partner. 20% of this allowance is then given as a reduction in the recipient’s tax bill. This can result in anything up to a £252 tax saving for the couple.
There are various criteria to be met. You can find more information about the marriage allowance on our website.
The marriage allowance was introduced in April 2015. You can claim to transfer the personal allowance for 2017/18 and subsequent tax years, even if you didn’t do it at the time. It is no longer possible to make a claim for the 2015/16 or 2016/17 tax year.
You will only get the full benefit if the person giving up the allowance is not using it AND the person receiving the tax reduction can use it.
This can result in the couples being able to make the following tax savings:
- 2020/21 tax year: the personal allowance was £12,500, meaning £1,250 can be transferred (maximum £250 tax saving).
- 2019/20 tax year: the personal allowance was £12,500, meaning £1,250 can be transferred (maximum £250 tax saving).
- 2018/19 tax year: the personal allowance was £11,850, meaning £1,190 (rounded up) can be transferred (maximum £238 tax saving).
- 2017/18 tax year: the personal allowance was £11,500, meaning £1,150 can be transferred (maximum £230 tax saving).
You need to meet the criteria in respect of each year you apply for the allowance.
Tax refunds in the UK can take up to 12 weeks to be processed by HMRC with a further 5 days to 5 weeks added to receive your money.
You can claim back 4 tax years which means that you can claim back as far as May 2016. You can also claim for this current tax year and even for any future PPI settlements.
The good news is that you can submit a claim for every tax year that you received a PPI settlement, since May 2016.