Calculate my rebate
Calculate my rebate

Tax back on Blue Motor Finance car finance compensation

Lender guide · Specialist Blue Motor Finance · part of Hodge MF (business since July 2026)
Quick answer

If Blue Motor Finance paid you compensation with interest, it will normally have taken 20% income tax off the interest. Basic-rate and non-taxpayers can usually get that tax back from HMRC, and we handle the claim for you.

By , Finance Editor Last checked 3 October 2026 · Sources listed below

Estimate your Blue Motor Finance rebate

Estimated repayment —
Get my full estimate Estimate before fees. Paid in more than one tax year? The full estimate lets you add each payment.
Parent groupHodge MF (business since July 2026)
Lender typeSpecialist
Motor finance provisionNot published
Agreements in FCA scheme6 Apr 2007 – 1 Nov 2024

About Blue Motor Finance

Blue Motor Finance provided hire purchase finance on cars, including used cars, usually arranged by the dealer when the vehicle was bought. The private equity investor Cabot Square Capital acquired the business in 2014.

The company entered administration on 30 July 2026, and its business is now carried on under names including Hodge MF. The FCA says Blue Motor Finance remains liable for any compensation it owes, but has warned that customers are unlikely to receive everything they are owed and that the Financial Services Compensation Scheme won’t cover the shortfall.

What Blue Motor Finance took off your payout

Compensation is usually made up of three parts. Only one of them is what we reclaim.

1 · RedressThe commission or interest you overpaid. This part isn’t taxed.
2 · InterestAdded for the time you were without the money. This is taxed.
3 · Tax deductedUsually 20% of the interest. This is what we get back for you.

Can I claim?

  1. Blue Motor Finance paid you compensation, under the FCA scheme, after a complaint or through the Financial Ombudsman.
  2. The compensation included interest, with tax deducted.
  3. You were a basic-rate or non-taxpayer in the tax year you were paid.

Blue Motor Finance questions

Will claiming affect my Blue Motor Finance compensation?

No. The rebate is a separate claim to HMRC. Blue Motor Finance isn’t involved and your compensation doesn’t change.

I had more than one Blue Motor Finance agreement

Every payout you received in the same tax year goes into one claim, including payouts from other lenders.

Blue Motor Finance hasn’t paid me yet

Reserve your rebate now. We’ll tell you when payments start and file for the right tax year once you’re paid.

My letter doesn’t show any tax deducted

If no tax was deducted, there’s nothing to reclaim. If you’re not sure, our case team can check it for you at no cost.

What do you do for me?

We check what you’re owed, work out the right tax year, prepare and submit the claim to HMRC as your agent, deal with any questions and send you the balance after our fees.

Sources

We only cite regulators, government and independent journalism. Spotted something out of date? Tell us.

Other lenders

All 25 lenders

Ready when you are

Get back what your lender kept.

Been paid? See what you could get back in about a minute. Still waiting for your lender? Reserve your rebate and we’ll be ready the day they pay.

Calculate my rebate Not paid yet? Reserve