Monthly Insurance payout do I declare?

Hippychick

Hi,

If anyone can advise I would be eternally grateful, my circumstances are as follows:

In the last two years I have suffered from a chronic illness which just isn't going away ever. I receive DLA but have managed to maintain my job, recently I became very ill and so cut down my working hours to part time fortunately my employers have an income protection policy and I have learned today that the insurance company are going to pay me the difference each month between my current part time salary and what I would earn if I worked full time.

My question is should this be declared to the tax man as technically I am not earning this but am receiving it as some form of compensation?

Any ideas woud be appreciated, clearly I would rather not have to pay tax on it but if I must then I will.

Thanks