Did you pay tax badly on your PPI claim?

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Gladstone Brookes is getting back to our successful PPI clients and here’s why …

Since 2016, all PPI refunds are subject to withholding tax. This was taken even before you received your payment.

However, very often the tax should not have been taken with many people benefiting from tax exemptions that should have been applied; which means that many people unintentionally paid MORE taxes than they should have.

Gladstone Brookes is now re-contacting our customers to educate them about this issue and offer a service that can apply these PPI tax exemptions and get back taxes unfairly levied!

What is the PPI tax?

Let’s look at what constitutes a PPI refund. These generally consist of 3 elements:

  • First, the reimbursement of the actual PPI that was paid.
  • Second, if an additional loan was placed on the original proceeds to cover the cost of the PPI, the interest on that loan would be repaid.
  • Third, the statutory interest (normally 8%) that has been paid since you took out the PPI; this is based on the combined figure of the two points above.

It is the third part that was subject to tax and this figure is treated by the HMRC as interest you would have received on any savings and is therefore taxable. Most lenders would have deducted the 20% base rate from the 8% interest you received and sent directly to HMRC.

Is it right?

The simple answer is no. Starting in 2016, HMRC allowed individuals to earn savings interest for each specific tax year based on the tax bracket they were in.

  • Taxpayer at the base rate (20%): Earn between £ 12,571 and £ 50,270, then you can earn £ 1,000 interest each year tax-free.
  • Higher rate taxpayer (40%): Earn between £ 50,271 and £ 150,000, then you can earn £ 500 interest each year tax free.
  • Highest rate taxpayer (45%): Earn more than £ 150,000 then you are not entitled to any personal savings allowance.

Even FoS and FCA confirm that:

If you don’t earn enough money – “You can generally recover the tax“on PPI refunds.

https://www.financial-ombudsman.org.uk/consumers/expect/tax

You only have to pay IMPT on PPI refunds “if you are already a taxpayer or if this takes you above your personal allowance for the tax year”.
https://www.fca.org.uk/ppi/faqs

So what do I do?

You can contact HMRC and fill out its forms yourself. However, even Martin Lewis, the consumer champion advised that:

  • “HMRC makes these (tax refund) forms quite complicated”
  • “I want the form (to claim the PPI tax) to be simpler”
  • “This can be difficult for those who normally only pay taxes through PAYE (ie payroll). “

https://blog.moneysavingexpert.com/2019/04/martin-lewis–had-a-ppi-payout—if-so-you-can-reclaim-the-tax-o/

We could help….

If you’ve now realized that you don’t need to pay tax and want your money back, Gladstone Brookes can help!

Our process is simple and straightforward, and Gladstone Brookes can put you on the path to reclaiming what’s rightfully yours.

Gladstone Brookes reached out to our existing clients to offer to help them collect their taxes. You may have already received our communication in the form of an email, text or phone call.

How do I know it’s really Gladstone Brookes ??

  • Gladstone Brookes will only call you on 01925 321332 to make contact regarding the R40 trip.
  • You can call Gladstone Brookes on any of the numbers you have so that we can confirm the call.
  • You can contact us on one of our social media pages or by email to confirm that Gladstone Brookes is contacting you.

What do I need to make a tax refund through this process?

Don’t worry if you don’t have all of the details below available when Gladstone Brookes contacts you, as these can be obtained later if needed.

  • PPI Details – Gladstone Brookes has all of this information for you
  • National insurance number
  • Annual salary figure for the tax year in which you received your PPI offer (if applicable)
  • State pension figure for the tax year in which you received your PPI offer (if applicable)
  • Private pension figure for the tax year in which you received your PPI offer (if applicable)
  • State taxable benefits for the tax year in which you received your PPI offer (if applicable)
  • Taxable interest payments for the tax year you received your PPI offer (if applicable)

Key points to remember

  • Gladstone Brookes goes NEVER request up-front payments, your card details, or an urgent money transfer to start your refund service.
  • Gladstone Brookes goes NEVER threaten or insist that you provide your national insurance number over the phone.
  • This refund service is not a scam and is a real way to get back the PPI tax that was deducted from your refund.

Awareness of scams

We are aware that there are a number of scams that mention HMRC and we want to help educate them about these in order to protect our customers. Below are some of the most common HMRC scams that have been circulating recently:

  • HMRC is taking legal action against you. Press “1” to be connected to a social worker.
  • 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 taxes and will be arrested in a few hours if you don’t pay immediately. Pay with vouchers or prepaid cards for Amazon or Google Play.
  • Your National Insurance Number will be terminated and your property seized due to unethical financial transactions. Ignoring this last warning can lead to legal trouble. Press ‘1’ for more details.
  • You are accused of tax evasion. In order to avoid legal action you will need to send a copy of your passport and pay over £ 1000.

What should I do if I think 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 was mentioned on the call that concerns you, please contact Gladstone Brookes on 01925 320932 or email us at [email protected] You can also contact Action Fraud and / or the police if you have been the victim of any form of fraud.

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