There are a few components that make you how much Tax you can be refunded off of PPI, this can be an immediate refund if PPI was sold to you on an occasion where you didn’t actually require it, and so it was sold in a misleading manner. Secondly, if the bank added an additional loan to your original loan without any reasoning and without you even being aware.
Furthermore since 2016 when the ‘Personal Savings Allowance’ was launched there are more and more cases piling up where a 20% tax has been deducted automatically off of PPI payments. The personal savings allowance allows taxpayers to have savings of £1000 tax free, of course this is another grey area, where unfortunately many that are not in the know, have been exploited by PPI in this loophole.
The average amount of PPI tax refunds are around £845, this is not a concrete claim, but if you are someone who has had a big payout, records show that the tax taken can be over £1000!
This ultimately all depends on how much PPI statutory Interest and how much interest you have earnt from savings, if this amount is less than your personal savings allowance you are entitled to a full tax refund.