Mortgage Protection Insurance payouts - are they taxable?

wonkles

My husband and I have both been made redundant in the last 12 months. We have 2 separate MPPI policies, which we've both claimed on. I'm just in the process of renewing our tax credits and wondering if the monthly insurance payments are classed as a taxable income? We've paid our monthly premiums using taxable income (redundancy payments which we received and paid tax on in the last financial year). Does anyone know where we stand with this? Any advice much appreciated.

ACG

If theyre personal policies paid by you and not your company then no theyre not taxable.

InsideInsurance

Are you asking if they are taxable or are you asking if they impact your benefits?

The answer to the former is no, they arent taxable. I cannot answer the second as I know nada about benefits but somone in the benefits section probably will

HappyMJ

wonkles wrote: »

My husband and I have both been made redundant in the last 12 months. We have 2 separate MPPI policies, which we've both claimed on. I'm just in the process of renewing our tax credits and wondering if the monthly insurance payments are classed as a taxable income? We've paid our monthly premiums using taxable income (redundancy payments which we received and paid tax on in the last financial year). Does anyone know where we stand with this? Any advice much appreciated.

No the payouts are not taxable (when the premiums are paid for out of after tax income) and they do not need to be declared for tax credits. The payments are not income it's an insurance policy payout.

wonkles

Thanks for your help everyone. All sorted now :-)