Here are eight easy ways to claim back money you might be owed.
Check to see where you might be sitting on thousands, to make the new year a little bit happier.
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Car finance mis-selling
If you bought a car, motorbike or van with a Personal Contract Purchase (PCP) or Hire Purchase deal before January 28 2021, you could be in line for a payout.
A major probe into whether people overpaid on their car loans has been extended, following concerns that a large number of people may have been overcharged through commission arrangements.
The selling practice, which was banned in 2021, was used by some brokers to adjust the interest rates they charged customers so that they could receive more cash in commission.
The regulator is now expecting to set out the findings of its work in May this year.On average, people paid £1,100 more interest on a typical £10,000 four-year car finance deal than they should have.
To make a claim, contact the lender that provided your finance – not the car dealer. Check your loan paperwork for details.
Payday loan mis-selling
Payday loans and other bad short-term credit loans have been widely mis-sold. If you couldn’t afford to repay the loan, or the lender failed to check your finances properly, you may be able to reclaim thousands of pounds.
Legally, lenders have to check that you can afford a loan before lending you the money, but many payday loans were sold without enough checks. And, many of those who found themselves struggling to pay back their loans weren’t treated properly by lenders. The Financial Ombudsman Service (FOS) found in favour of more than 60% of complaints about payday loans in January to March 2021.
You may be refunded interest plus any fees and charges.
It doesn’t matter whether you have an ongoing loan or you’ve already paid it off, as long as you raise the case within six years of taking out the loan.Complain to your lender, and if your claim is rejected, escalate it to the Financial Ombudsman Service.
Student loan overpayments
Student loan repayments are automatically deducted from wages each month, but hundreds of thousands of people accidentally overpay their student loans each year, often without realising.
Check if you’re one of them and request a refund online (rather than filling in a form). You’ll need to sign in to your online repayment account and select ‘request a refund’.
PPI payouts back again
Payment Protection Insurance (PPI) was widely mis-sold.
The PPI deadline passed on 29 August 2019, so the normal reclaim route is now no longer open, but law firm Harcus Parker is attempting to launch a group claim against banks for £18billion taken from PPI customers. If successful, each customer could get an average £3,000 back.
To make a claim, you need to have had a credit card, store card, loan, overdraft, store card or car finance in the past. Plus, you need to either have never made a PPI claim before, or your claim was rejected.
To join, register at Ppiglo.com – it’s free, but only join if you believe you qualify.
Reclaim tax on your PPI
Even if you got payout, you could still claim £100s in overpaid tax on the money you reclaimed. Many people paid tax they didn’t owe when banks automatically deducted 20% tax.PPI refunds typically had three parts: a refund on premiums you paid, a refund of extra interest on loans caused by PPI charges, and 8% interest on both refunds. Look up your paperwork for the details. You can ask the bank that repaid you to provide a certificate showing the tax deducted if you didn’t keep your letter.If you weren’t paying income tax when you received your payout or qualified for the Personal Savings Allowance (up to £1,000 tax-free savings interest), you could reclaim the tax.You can reclaim the tax from the past four years by filling out form R40 on gov.uk.
Tax overpayments
In the past, these refunds were all paid automatically, but that’s no longer done. If you’ve been taxed through PAYE, check for errors in your tax code. At the end of each tax year, HMRC should send you a P800 notice showing if you’re owed a refund.You can claim your refund either through your personal tax account at gov.uk or through the HMRC app or by calling HMRC on 0300 200 3300.
Work expenses tax refund
You might be able to claim tax relief if you use your own money for things that you must buy for your job, and you only use these things for your workExamples include:
- if you work from home
- on uniforms, work clothing and tools
- for vehicles you use for work
- on professional fees and subscriptions
- on travel and overnight expenses
- for buying other equipment
- File a claim directly through Gov.uk. If you complete a Self Assessment tax return, you need to claim through your tax return instead.
Marriage Allowance
Married couples can benefit from a tax break where the lower earner can transfer £1,260 of their personal allowance to their partner. The higher-earning spouse will receive a tax credit for the amount of personal allowance transferred to them. This will be deducted from the amount of tax they would usually pay. To be eligible, the lower-earning partner’s income must be less than the standard personal allowance, which is £12,570 in the tax year 2024/25.The higher-earning partner’s salary must fall between the threshold for the basic rate of income tax – between £12,571 and £50,270.If you live in Scotland, you can claim marriage allowance if the higher-earning partner’s salary falls between the Scottish starter, basic rate or intermediate rate of tax – so the higher-earning partner’s salary needs to be less than £43,662. This also applies for civil partnerships.Apply at gov.uk or through your tax return. You can also backdate claims by up to four years.