Money-saving guru Martin Lewis has issued an urgent warning to over a million Brits who may be sitting on unclaimed tax refunds worth up to £3,000. The financial expert revealed that many taxpayers could be owed money from HMRC due to overpayments on their PPI (Payment Protection Insurance) compensation.
Who is eligible for the refund?
According to Lewis, anyone who received PPI compensation between 2016 and 2023 and paid tax on it might have overpaid. The issue stems from HMRC incorrectly taxing the interest portion of PPI payouts at the same rate as the compensation itself.
How much could you claim?
While the average refund is about £1,000, some individuals could be owed as much as £3,000. The exact amount depends on:
- The size of your PPI payout
- Your income tax bracket
- How much interest was included in your compensation
Deadline approaching fast
Lewis stressed that time is running out to claim, with the deadline set for 5 April 2025. After this date, any unclaimed refunds will be absorbed by the Treasury.
How to check if you're owed money
The process is simpler than many might think:
- Gather your PPI compensation documents
- Check how much interest was included
- Contact HMRC to make your claim
Martin Lewis advised: "This isn't a scam - it's your money. If you've had PPI compensation in recent years, it's worth spending 10 minutes to check if you're owed a refund."
With over a million potential claimants, this could represent one of the largest unclaimed tax rebate opportunities in recent UK history.
