Scheme latest Calculate my rebate

Tax guides

  1. 01Is car finance compensation taxable?
  2. 02The Personal Savings Allowance
  3. 03Which tax year it counts in
  4. 04Reading your compensation letter
  5. 05What is an R40 form?
  6. 06Non-taxpayers
  7. 07Pensioners
  8. 08Starting rate for savings
  9. 09Higher-rate taxpayers
  10. 10More than one payout
All guides

Find your lender

All 29 lenders

Help

Calculate my rebate

Tax Repayments · a trading name of Rebate Gateway Limited

Tax back on Mercedes-Benz Financial Services car finance compensation

Lender guide · Car brand Mercedes-Benz Financial Services · part of Mercedes-Benz Group
Quick answer

If Mercedes-Benz Financial Services paid you compensation with interest, it will normally have taken income tax off the interest (22% on payments from April 2027). 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 Mercedes-Benz FS 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 groupMercedes-Benz Group
Car brandsMercedes-Benz
Motor finance provision£400m
Agreements in FCA scheme6 Apr 2007 – 1 Nov 2024

About Mercedes-Benz Financial Services

Mercedes-Benz Financial Services UK Limited is the Mercedes-Benz Group’s finance company in the UK, based in Milton Keynes. It provides finance on Mercedes-Benz vehicles, usually arranged at a franchised dealer as part of buying the car. If you had a Mercedes on hire purchase or PCP, there is a good chance this company was your lender, even if the paperwork mainly showed the Mercedes-Benz name.

It is one of three lenders challenging the FCA’s compensation scheme at the Upper Tribunal, which suspended parts of the scheme in July 2026 while the challenges are heard.

What Mercedes-Benz FS 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 22% of the interest on payments from April 2027. This is what we get back for you.

Can I claim?

  1. Mercedes-Benz Financial Services 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.

Mercedes-Benz FS questions

Will claiming affect my Mercedes-Benz Financial Services compensation?

No. The rebate is a separate claim to HMRC. Mercedes-Benz Financial Services isn’t involved and your compensation doesn’t change.

I had more than one Mercedes-Benz FS agreement

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

Mercedes-Benz FS 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 29 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
Calculate my rebate