Declaring unearned income to HMRC

BlissC

I'm disabled and have a number of long-term health conditions but with support from Access to Work and a very understanding manager I manage to work part time. I'm single and I work just over 16 hours a week, and earn approximately £7500 a year. In addition to my earnings from work, I also get Disability Living Allowance and Working Tax Credits.

I've recently found out that I've won £1000 in a local charity lottery. I obviously need to notify HMRC Tax Credits about this additional income, but do I also need to notify the Inland Revenue? Even taking into account the extra £1000, my income for the year will still be well within my personal allowance, and never having been in this situation before (I've been paying into this lottery for almost 14 years and have never won anything before!) I'm not sure how to deal with this.

HappyMJ

BlissC wrote: »

I'm disabled and have a number of long-term health conditions but with support from Access to Work and a very understanding manager I manage to work part time. I'm single and I work just over 16 hours a week, and earn approximately £7500 a year. In addition to my earnings from work, I also get Disability Living Allowance and Working Tax Credits.

I've recently found out that I've won £1000 in a local charity lottery. I obviously need to notify HMRC Tax Credits about this additional income, but do I also need to notify the Inland Revenue? Even taking into account the extra £1000, my income for the year will still be well within my personal allowance, and never having been in this situation before (I've been paying into this lottery for almost 14 years and have never won anything before!) I'm not sure how to deal with this.

You won a lottery prize...it's not income. It's capital. You don't declare it to anyone. The only time you would is if you were on a benefit which takes into account your capital and if it's under £6,000 excluding the home you live in and it's contents then nothing happens. If it's over £6,000 you'll be deemed to have £1 of income a week for every £250 in excess of £6,000.

Spend it enjoy your win and have fun.

Keep_pedalling

As above no need to report this to enyone, just treat yourself to something nice and enjoy your windfall.