All the money you can reclaim in 2025 and you could be owed thousands in cash

START the new year in the best way by reclaiming money you are owed – from mis-sold car finance to tax refunds. 

Here’s how to get your hands on cash that could be going unclaimed in your name.

Car finance mis-selling – £1,100+

The latest money scandal involves car finance deals.

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 owed thousands.

The issue? Some car salesmen earned hidden commissions based on high interest rates charged to customers.

Financial regulator the Financial Conduct Authority (FCA) estimates that on average, people paid £1,100 more interest on a typical £10,000 four-year car finance deal than they should have.

But, if you bought more than one car on finance between 2007 and 2021, you could be owed far more.

To make a claim, contact the lender that provided your finance – not the car dealer.

Check your loan paperwork, or, if the finance was taken out within the past six years, review your credit report for lender details.

Last chance for a PPI payout – £3,000

Payment Protection Insurance (PPI) was widely mis-sold back in the ’90s and noughties.

It was designed to cover your loan or credit card repayments if you had an accident, fell ill or became unemployed.

While the official claims deadline passed in August 2019, there’s still hope.

Law firm Harcus Parker is attempting to launch a group claim against banks for £18billion in secret commssions taken from PPI customers.

If successful, claimant 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.

False claims could lead to contempt of court.

Claim tax on your PPI – £100s

Already had a PPI payout? You could still be owed £100s in overpaid tax on the money you reclaimed.

Many people paid tax they didn’t owe when banks automatically deducted 20% tax from payouts.

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.

This last part was taxed as savings interest.

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.

Let’s say the PPI you reclaimed was £3,000 and it was for PPI taken out a decade earlier – you could be owed £300 in overpaid tax.

You can reclaim the tax from the past four years (back to 2020/21) by filling out form R40 on gov.uk.

If you have your final response Letter from when you received your PPI money, it should show you a breakdown of what were getting, which will show how much tax was deducted. 

You can ask the bank that repaid you to provide a certificate showing the tax deducted if you can’t find your letter.

Tax overpayments – £1,562

If you’ve taxed through PAYE, you could be overpaying due to 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.

According to data from Rift Refunds, the average payout in 2023 was £1,562.

In the past, these refunds were all paid automatically, but that’s no longer the case.

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 and asking for a cheque.

Work expenses tax refund – £125

You can get employee tax relief on your work-related expenses.

That means if you’ve spent money on job-related expenses like uniforms, tools or professional fees, you could reclaim the tax from HMRC.

The average claim is £125, according to the taxman.

File a claim directly through Gov.uk – it’s a straightforward process so there’s no need to pay an agency to do it for you.

Marriage Allowance – £252

If you are married or in a civil partnership, you could save up to £252 a year on tax with the Marriage Allowance.

One partner must earn less than the Personal Allowance (£12,570), while the other must be a basic rate taxpayer.

The lower earner can claim the Marriage Allowance, and £1,260 of your Personal Allowance will be added to their partner’s.

This can reduce your overall tax bill by up to £252 a year.

Apply at gov.uk or through your tax return. You can also backdate claims by up to four years, meaning you could get over £1,000 extra.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

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