Readers’ forum: Tax on interest on payment protection insurance

I have started to see emails and texts from payment protection insurance (PPI) claims companies and have received some myself saying that there is another opportunity for a reclaim.

This is because the PPI compensation which has already been paid included an interest element on which tax was deducted at source. In many cases the amount of interest would be less than the personal savings allowance and/ or the starting rate for savings.

Have other readers had experience of these communications? Where the recipient is in self-assessment surely it is possible to obtain the refund by including the interest and the tax deducted at source with the return in the normal way without the claims company taking a large share of the refund?

I look forward to hearing from readers.

Query 19 889 – Optimist.

Consider a client’s total income when making a claim.

Personally I have...