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Does high rate mobility DLA used for mobility car count as income ?

Hi People,

I've just received my DLA decision and have been given the high rate for mobility. This is the first time I have received this and I'm not 100% how to works. My understanding is, you can exchange the amount of money you would receive, for a mobility car. My question is this;

We also receive working tax credits, and child tax credits, I now have to inform them of my DLA entitlement. If I keep the mobility component in money, I expect they will deduct this from our tax credits amount. If I use the mobility component for a car (so we are not receiving the money) is this still counted as income by the tax credits people (and deductions made) or not ?

In my opinion, I would have thought, if you're not receiving it as money, its not income, therefore it should not affect my tax credits amount, is this correct ?

Thanks

Comments

  • Tehya
    Tehya Posts: 501 Forumite
    DLA should not be counted as income (it's to help cover the extra costs because of disability) so other benefits will not be reduced whether you have a motability car or not.

    It's possible to even get an increase of Working Tax Credits though I think to get the extra the disabled person needs to be in employment as it's designed to help a disabled person cope with the extra costs of going to work. So if you yourself work let tax credits know about your award or ring the benefit enquiry line (I've always found them to be very helpful) they are a hrlpline for disabled people only run by the DWP - info can be found here including phone numbers etc http://www.direct.gov.uk/en/Dl1/Directories/DG_10011165

    Hope this helps, oh and congrats on your award.
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