We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Group Income Protection Settlement
dodgyeyes
Posts: 21 Forumite
Hi all, I am currently receiving monthly income, via PAYE and my employer, from a group income protection scheme. The insurer now wants to settle the claim and I am wondering what the tax and NI implications are. I am currently a 20% tax payer - what happens if I get a six figure sum as a one off payment and then become unemployed? Will most of it go in tax as I will be in the 40% bracket for the year in which it is paid?
Any input will be appreciated.
Any input will be appreciated.
0
Comments
-
Your employers should be able to advise you but from my limited knowledge I believe IP insurance payments are exempt from taxation0
-
Thats very kind of you to reply - I must admit I have tried the tax office etc., and not really getting anywhere. I will return to my employer and leave it with him - thanks for the advice
0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.8K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.6K Spending & Discounts
- 247.6K Work, Benefits & Business
- 604.5K Mortgages, Homes & Bills
- 178.6K Life & Family
- 262.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards