Tax Credits and PPI?

MammyV

Hi,

I was recently lucky enough to reclaim PPI on two different accounts. I know i need to declare this to pay tax. However, will this affect my tax credits? I am on maternity leave this tax year (so was claiming tax credits), but i will be going back next tax year (so will stop claiming as from April). Very worried that i might lose my tax credits from this year? Wondering whether i am best off ringing HMRC after April (one of my payments hasn't come through anyway)

Thank you for your help in advance.

di3004

Hi and welcome

Well done on your success!:beer:

As far as I am aware, if the business have not already included debiting the tax and have mentioned that your to contact the HMRC in regards of the tax, I think that is the only thing you have to declare, unless someone else says differently but that is what I am aware of.;)

dunstonh

It is treated as unearned income. Not earned income.

limars

dunstonh wrote: »

It is treated as unearned income. Not earned income.

so what does that mean please i too am on tax credits and have had a ppi refund does that mean credits wil be stopped ??

MammyV

Thank you. Ahh i didn't even think of it as earned/unearned income. I could only find info on declaring to tax man, which of course i will - but didnt know if that automatically flags it up to tax credits.

That's great, thanks very much. It has meant i can stay off for the whole year with my gorgeous baby; couldn't have come at a better time!!

Thanks again :-)