Does income from Payment protection policy count as income for CTC?

chivers1977

My OH has been served notice of redundancy with his leaving date to be July following consultation and garden leave.

Just thinking ahead - in terms of income he will get JSA (contribution based) and Mortgage Payment Protection of £800 pm. Does the MPPI payment "count" as income towards CTC? How does it work as he has been earning in tax year 09/10 and will have his garden leave April-July 2010. Will it be based on tax year 09/10's income.

At present we get the basic CTC of £545 with no childcare element.

Many thanks for your help from confused of Kent?

[Deleted User]

2010/11 payment will be based on 2009/10 income,but afaik if your income falls you can get a re-assessment mid year,as for the MPP not 100% sure

chivers1977

Thanks Woodbine - will be one of the million calls to make when the axe falls!

codwidow

No it doesnt. It is because the premiums are taxable therefore you have already paid tax on it, is my understanding and boy do you pay tax I just got our mortgage statement today

http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04612.htm


Hope your husband get sorted soon, I was made redundant last year and having always felt disgruntled shelling out 45quid a month for the past 6 years I am now rather grateful as our policy is split 50/50 so half our mortgage is paid because my husband works full time and after my JSA ran out we werent entitled to anything else so wouldnt have qualified for mortgage interest or the like, similar to your situation I expect

Hope that helps