PPI Offer & Tax Credits

ConfusedamI

Hi Everyone

Im new to this site, so Im sorry if this question has been asked before.

I've just found out that Im soon to be getting a PPI refund of about 5k :rotfl: I know that I have to declare this to HMRC for tax purposes, do you also have to declare it to tax credits??

Any help would be greatfully appreciated on this, I have spoken to HMRC several times but they couldn't give me a straight answer?!!

Thanks in advance

benefitbaby

Savings themselves do not impact tax credit entitlement however any interest from savings need to be declared - although given the interest rates at the mo this probably won't be much of an issue.

ConfusedamI

Thanks, they just tell me its a 'grey area' which isn't much help. I think some of the confusion comes from the interest part of the ppi refund, surely they must be asked this a lot

zagfles

If the interest part is taxable then you will have to declare it, though the first £300 of interest (and similar type income eg dividends) is ignored.