Did you know that you can get your PPI payout tax back?
What many people are unaware of is that they had paid 20% tax from their compensation payout, which they can claim back.
For example:
Ellen Doe was a 20% taxpayer in 2018. For her, getting a PPI refund was already a win! What she did not realise was that she was charged 20% tax on that refund.
This is how we can calculate how much refund we can get:
- She Earned £200 interest on her savings in 2018.
- She got a PPI payout of £1500
In this case, her total interest for the year was £1,150 – £150 over her personal savings allowance. Therefore, she should only pay 20% tax (£30) on the £150 over her personal savings allowance and the rest is tax-free. As the PPI automatically had £190 tax taken off it, she is due £160 tax back.
Get assistance and be possibly compensated!