Student Finance and refund of Barclays a Additions and PPI income

Catbells01

I am supporting my sons application for a student loan as due to our joint incomes he is eligible for an additional loan for maintenance. Last year it was straight forward as we just had our incomes to declare and a negligible amount of interest on a small savings account. However during 2013-2014 which is the tax year we are reporting on, we received a lump sum refund for Barclays Additions and refund of Ppi charges. Both refunds included a proportion of simple interest at 8%. Should any of this be included as income for assessment purposes?

Nasqueron

I believe, happy to be corrected, the interest has to be declared to the tax man through the normal channels (though banks often take the tax off before they refund you) just as you would for interest on savings.

The refund of fees is treated differently

Catbells01

My question refers to whether I need to declare the refunds and interest on the student loan application support for my son as income. Not to declare to the Inland Revenue as I have already paid tax on it.

Nasqueron

Yes that is what I said - the interest is classed as income (hence you are taxed on it), the refund of premiums is not (though having it as savings can cause issues with those claiming benefits) so always worth a word with the actual organisation rather than asking on a forum