How does the PPI refund calculator work?

When you receive a refund for Payment Protection Insurance (PPI), your refund will include Statutory Interest. The bank/lender is legally required to deduct tax from this interest at a flat rate of 20%.

However, in reality most people shouldn’t have paid this because they are entitled to at least some tax-free allowances which would have reduced the amount of tax they needed to pay. These allowances include:

• Personal Allowance
• Personal Savings allowance
• Starting Rate for Savings

The value of these allowances is primarily based on your total income (from your job, pension or benefits) for the tax year in which you received your refund. The banks would ignore these allowances – meaning in most instances, you’ll end up paying too much tax.

This PPI refund calculator will work out which tax-free allowances you are entitled to based on your circumstances and calculate an estimate of how much you have overpaid.

How accurate is my result?

As long as you entered the figures correctly, it should be pretty accurate. But, you should treat it as a guide only as there are many other factors that could impact the final value of your PPI tax rebate.

For example, it does not factor in any other under or overpayments you may have for the years (these may be added or offset against any potential refund if you make a claim).

It also does not take into account any other untaxed interest you may have received during the year (for example interest from your savings).

I’ve paid too much tax, how do I claim it back?

You can complete your details on the form and have our team handle your refund.

Is there a time limit for claiming?

You must claim within 4 years from the end of the tax year you received your refund. A tax year runs from 6th April to 5th April the following year.