How are your fees calculated?

ReclaimPPI.co.uk work on a "no win, no fee" basis so you have nothing to lose by making a claim. Our fees are 10% + VAT of your total refund, which comes to a total of 12%.

Here is an example breakdown of an offer and our fee:
 
(A) Refund of PPI premuims £1,000
(B) Refund of interest charged on PPI premiums £500
(C) 8% statutory interest £500
(D) Total refund (A) + (B) + (C) £2,000
(E) Income tax deducted by lender on 8% statutory interest £100
(F) Total paid to you by lender (D) - (E) £1,900
   
(G) Our net fee charged on total refund (D) at 10% £200
(H) VAT at 20% of our fee (G) £40
(I) Our gross fee (G) + (H) £240
   
(J) Amount you receive after our fee (F) - (I) £1,660


Why is income tax being deducted?

The total amount you receive will generally comprise of two sections:
  1. The first part is the refund of the premiums you have paid along with any interest charged on this, which you do not have to pay tax on.
  2. The second part is statutory interest added to that amount (typically 8%), which is to compensate you for the lack of use of these funds. HMRC consider this part to be taxable income (in the same way as bank interest on savings). From 1 October 2013 HMRC has instructed all lenders to deduct from your total amount received any tax that may be due, and to pay it to them on your behalf.
Good news - you can claim it back!

Our fee is charged on the total refund awarded before this income tax is deducted, but you can claim this tax back using what's called an R40 form (you don't need to send in an R40 if you usually complete a self-assessment tax return, as you can claim the tax paid back as part of that process).

Please visit HMRC website for more information, or call HMRC Tax helpline: 0300 200 3300. As per our agreed terms and conditions, the fee is payable on the “value of all compensation” including any possible tax element.

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