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Is this classed as income ?

no-oneknowsme
no-oneknowsme Posts: 1,955 Forumite
in Benefits & tax credits
If some-one receives a personal injury compensation claim , should this money be reported to tax credits as income ?
The loopy one has gone :j

Comments

  • NASA_2
    NASA_2 Posts: 5,571 Forumite
    As I understand it it should be reported to tax credits as you may get income as a result of the capital.
  • no-oneknowsme
    no-oneknowsme Posts: 1,955 Forumite
    NASA wrote: »
    As I understand it it should be reported to tax credits as you may get income as a result of the capital.


    I may get income as a result of the capital ?

    Sorry but i just dont understand what you mean by this .

    Can anyone else offer any advice ?
    The loopy one has gone :j
  • NASA_2
    NASA_2 Posts: 5,571 Forumite
    no-oneknowsme wrote: »
    I may get income as a result of the capital ?

    Sorry but i just dont understand what you mean by this .

    Can anyone else offer any advice ?
    Never heard of 'interest' if you put it in a bank or savings account?

    That interest can count as income as I understand it.
  • Rainmaker_uk
    Rainmaker_uk Posts: 531 Forumite
    It should be reported - whether it will make any difference to your payments I don't know.
  • no-oneknowsme
    no-oneknowsme Posts: 1,955 Forumite
    I have just checked on the HMRC website to see what other "income" needs to be declared and it doesnt mention compensation payments anywhere ?

    NASA - Yes i have heard of interest ! In saying that , the money received wasnt all that much and has been spent so no interest to include lol.
    The loopy one has gone :j
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    You do not need to declare the income from compensation as income.

    If interest is earned that may be declarable. As you earned no interest there is no need to worry.
  • no-oneknowsme
    no-oneknowsme Posts: 1,955 Forumite
    Thank you ever so much Subsoniccoyote !

    You know that awful sinking feeling you get when you think you may have done something wrong ? Well i have been sitting here feeling ill for the past hour or so :o

    I was chatting to a friend who was determined that compensation payments have to be delared as income to tco and i got that sinking feeling in the pit of my stomach because it dawned on me that my OH got a personal injury payment after an accidnt way back in August time of last year !!!

    I was imaginging all sorts of overpayments :rotfl:

    Subsonic - I know you work in tco as i have read many of your posts so you have just put my mind at ease.

    I would hate to get on the wrong side of HMRC.

    Thanks again.
    The loopy one has gone :j
This discussion has been closed.
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