Financial experts are becoming increasingly concerned that recipients of PPI (Payment Protection Insurance) compensation are underpaying tax.
PPI compensation has made huge headlines over the past couple of years, with many of the UK's major banks paying billions in compensation to people who were wrongly sold the insurance. Last year UK banks paid out £1.9 billion in compensation and the total bill is expected to be above £5 billion.
There are generally two parts to the payout, compensation and in some cases interest on the compensation amount.
The average payout is £3,000 and whilst the compensation, which forms the largest proportion of ...