PPI affecting Working taxes?

shazdep

Ive recently been lucky enough to win my very own PPI claim!! I am a single mum claiming working tax and wanted to know if I have to make them aware of it (says something about extra £5000 in income is ignored?) and if so which part of it as i've also read that they only need to know about the interest part of it?
Thanks in advance...

dunstonh

Only the interest element of the refund is classed as income. The capital part (refund of premium) is not income.

10pence

shazdep wrote: »

Ive recently been lucky enough to win my very own PPI claim!! I am a single mum claiming working tax and wanted to know if I have to make them aware of it (says something about extra £5000 in income is ignored?) and if so which part of it as i've also read that they only need to know about the interest part of it?
Thanks in advance...

dunstonh wrote: »

Only the interest element of the refund is classed as income. The capital part (refund of premium) is not income.

Rules for benefits and income and capital are slightly different depending on the benefits in question.

Are you in receipt of any other benefit and do you have any other savings in your name? AS this will have an impact on the information provided.

Child Tax Credits (CTC) are not affected by savings/capital.
Working Tax Credits (WTC) are not affected by savings/capital limits but any interest £300 and above has to be declared.

The reference to income is if you have an increase/decrease in income such as salary is ignored for the calculation of WTC.

If you're on other means tested benefits such as Income Support, Housing Benefit or Council Tax Support (Reduction) then they have different rules.