Tax on PPI payout

[bing]

Hey folks,

Does anyone know how tax is calculated on a PPI payout?

Is it from the total amount or just the interest paid?
My claim says there's some tax applied at source and I also need to pay HMRC additional taxes

And before anyone asks it's not a HUGE payout.

[Funk]

I believe tax is payable on the interest element (based on your personal tax allowances).

Edit: this may help - https://blog.moneysavingexpert.com/2019/04/martin-...