PUBLISHED: 21:03, Mon, Feb 3, 2020 | UPDATED: 21:39, Mon, Feb 3, 2020
Martin Lewis, 47, appeared on ITV’s The Martin Lewis Money Show this evening. On the programme, the Money Saving Expert urged Britons to claim back tax on PPI payouts as it could boost bank balances by hundreds of pounds.
Many Britons thought discussions about reclaiming mis-sold Payment Protection Insurance (PPI) were over, but Martin has revealed that some PPI payouts were taxed - meaning thousands of Britons who’ve had a payout could be entitled to extra cash.
According to Martin, millions of Britons could be entitled to another big payout if they were taxed on their PPI claim. This applies to anyone who’s had a payout since April 2015 right up until today, and any future payouts.
He said: “For the millions who’ve already reclaimed the £37billion so far, and the hundreds of thousands who’ve put claims in, it’s worth knowing PPI payouts are taxed.
“Most people whose claim is going through now or who have done it in the last four years can get this money – which can be hundreds of pounds back.”
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Martin Lewis Money Show: Money Saving Expert urges viewers to claim tax back on PPI payout (Image: ITV)
Martin Lewis: Money Saving Expert reveals how you could be owed tax back on your PPI claim (Image: ITV)
The opportunity to reclaim mis-sold PPI ended last year on August 29, 2019.
However, for people who have already received a PPI payout, he revealed that many could reclaim more money that was wrongfully taxed from them.
This is because most banks and lenders that sold PPI automatically deduct tax from payouts, even though not everyone has to pay it.
Many firms deduct tax from PPI payouts at the basic 20 per cent rate, meaning non-taxpayers are due the money back, the founder of consumer website MoneySavingExpert said in the programme.