PHI and tax credits

dave030445

xylophone wrote: »

i

Then despite being described as PHI it seems to fall under the arrangements described in the first paragraph here?

http://www.hmrc.gov.uk/manuals/eimanual/eim06410.htm

If this payment is taxable then it is regarded as income and so needs to be declared as income?
https://www.gov.uk/tax-credits-working-out-income

not always there are some exceptions where taxable income is not used for work out tax credit.

dave030445

blondebubbles wrote: »

The general rule is if it's taxable then it needs to be declared.

However if the tax credit helpline aren't tax trained. They simply have a list of what should be included and what shouldn't. As you can imagine, with the number of possible income sources available, it is impossible to have a list of every single type.

If you write to them then someone can look into it and you can keep the reply for your records.

hi thanks for all your help. where would they get the information from is there any website that you know that they would use to get this info from. As when we have phoned up some of the staff as soon as we tell them its taxable they say yes you need to declare it and when others put you on hold to find out come back and say no you don't need to tell us about it. Due to this i now have a 2.5k over payment to pay back even though we were told it didn't need to be declared.

dave030445

blondebubbles wrote: »

The link I gave you is part of their guidance however the helpline have their own internal guidance to use which is taken from the technical manual but more user friendly.

As I said, the helpline can only check the list they have available. What you are querying may not be on that list hence why you are getting different answers.

If you write in this will go to the tax credit office and not the helpline. There are "experts" there than know the guidance inside out.

ok great thanks for all your help

dave030445

all sorted (for now) income from a PHI does not count towards income for the working out tax credit. Would that be the same for ESA or are the rules different.