Working Tax Credits

andrewmp

blondebubbles wrote: »

It would be up to the claimant to report it to them via a change of circumstances or on the renewal.

Without any information of the OP claims it impossible to say what is causing it.

Yeah, that's what I thought, so seeing as they (presumably) haven't informed them then it can't be that causing it.

merrydance

Well I still haven't received the letter saying why we will not be receiving tax credits. However I would imagine the tax office and working tax credits offices work together? I claimed a refund from the tax office for the tax paid on the interest part of my ppi claim. So the tax office know I got the award so I'm assuming working tax credits also know? What I am puzzled about is why the interest part of the award is treated as income. This was half of the award and this must be effecting many people. Has this always been the case?

No where on the tax credit form does it say you must declare ppi interest, interest on savings and investments, yes. But I have no savings!

Nothing else has changed on our circumstance, no pay rise or anymore overtime.

NYM

This link may help ..8% Interest

The repayment of the premium and the refund of historical interest are not taxable because they are refunds of amounts paid, it's the simple interest of 8% that is taxable and must be declared.

See these ...Examples

Top-ranking_Bug

This is exactly the answer I needed - short, sweet and to the point!
It clarified everything for me, and enabled me to submit my Income Tax Return AND my Working Tax Credit Review. Thank you!

NYM wrote: »

The repayment of the premium and the refund of historical interest are not taxable because they are refunds of amounts paid, it's the simple interest of 8% that is taxable and must be declared.