Working Tax Credits

merrydance

Hi Hope someone can help me. Just been advised that we are not longer entitled to working tax credits. I go a ppi payment the interest paid to me was over £3,000 this was in February 2015. Is this counted as income? Do I have to add this to my income.


Thanks

sxcizme3010

merrydance wrote: »

Hi Hope someone can help me. Just been advised that we are not longer entitled to working tax credits. I go a ppi payment the interest paid to me was over £3,000 this was in February 2015. Is this counted as income? Do I have to add this to my income.


Thanks

Hi, Yes you do

merrydance

Oh that must be why are not entitled this year. Just a thought, surely this was due to me over years, why should it be counted as income in one go. Totally confused.

andrewmp

Tax credits are based on taxable income, I don't see how a PPI refund would be taxable?

merrydance

Hi Bubbles

I have and did not include that. But as it was taxed I suppose HMRC already know about it?

HappyMJ

blondebubbles wrote: »

The interest is and that's what needs to be declared.

OP you must declare this yourself.

So just the interest needs to be declared and not the refund itself?

merrydance

Oh gosh I didn't realise this. But surely this interest should be spread over the years it was owed to me. Not in one lump?

HappyMJ

merrydance wrote: »

Oh gosh I didn't realise this. But surely this interest should be spread over the years it was owed to me. Not in one lump?

It's taxed in the year in which it's received. Has tax been taken off the interest? Do you pay tax? You could get a refund of the tax if the refund is in the name of a person who doesn't earn above the personal allowance.

merrydance

Hi yes I received the tax paid on it. But now my income has gone up £3,000 which means we will not get working tax credits for this year.

Will go through the letter from tax credits when we get it to see what is going on.

merrydance

Thank you bubbles Will see what it says in the award when I get the letter. Just a bit surprised when no payment was in my bank account today. Phoned them and first of all the chap said I had to pay them back £2,400!!!! then he said no you don't you just will not receive anything for this year. Totally confused. But can only assume at the moment it is something to do with getting this ppi payment as nothing else has changed. Thanks again for your help

andrewmp

blondebubbles wrote: »

The interest is and that's what needs to be declared.

OP you must declare this yourself.

Ah right, how would they know about it then? I'd imagine it's something else causing this, not the interest?

Maybe he/she worked some overtime, or got a pay rise, or worked a full year this year and not the previous year etc.