In laws, compensation and tax credits

poppyscorner

Hi All,

Will try to keep a really long story very brief the bones of it is my in laws went on holiday 6 yrs ago and got run over they were insured by a certain insurance company who were supposed to be representing them in a case abroad the company failed dismally in this and the case was bungled from start to finish until Jan this year when the latest cowboys working on the case said sorry it has been too long forget it you will get nothing.

They had both sustained major injuries MIL had a job at the time of the accident which she could no longer do FIL had his own very sucessful roofing business that he had worked at for 30 yrs he lost this they also had to sell their house before it was repossesed they made a couple of grand but nothing substantial.

Anyhow they made a complaint about the way it was handled and the insurance companies solicitors have given them 15k they have agreed because they have no fight left in them anyways they have an ongoing claim for tax credits do they need to declare this as income to tax credits or just interest accrued from it as income.

Any advice appreciated

Thanks Poppy x

kelloggs36

I think it will just be classed as savings in which case only the interest earned on it will count.

poppyscorner

Thanks for that kelloggs that was what I thought but just wanted to check