waiting for our yearly argument with tax credit

dave030445

The time has nearly come for the renewal packs to arrive to show an over payment of just over £2000 and how much they are going to deducted and the many phone calls to try and prove my income £18,000 doesn't count towards tax credit.

[Deleted User]

dave030445 wrote: »

The time has nearly come for the renewal packs to arrive to show an over payment of just over £2000 and how much they are going to deducted and the many phone calls to try and prove my income £18,000 doesn't count towards tax credit.

Why would your 'income' not count?

dave030445

_shel wrote: »

Why would your 'income' not count?

sorry forgot to say its a PHI

Icequeen99

Are they getting that information through from the Real Time Earnings system? -- so it is shown already on your award notice.

I am quite interested in this as I picked up some similar cases last year. What was your experience in getting it resolved?

IQ

kingfisherblue

dave030445 wrote: »

sorry forgot to say its a PHI

What's a PHI?

Mrs_Ryan

kingfisherblue wrote: »

What's a PHI?

Looks to be a permanent health insurance- basically an insurance payment because of being unable to work due to ill health or disability.

[Deleted User]

So if it is income replacement insurance surely it is income?

CakeCrusader

They do discount things like student loans and bursaries, but I've not heard of this one.

Icequeen - I work from home. My RTI income is higher than my actual income as I have to deduct expenses (electricity, gas etc). It's a faff every year because they are unable to understand that my actual income is lower than the RTI income they have because I have work expenses (which are all noted on my tax return). They referred me to Concentrix last year, and after three months of sending in information and calling, they did their checks over the phone and said it was a waste of their time as they were work expenses and I'm allowed to claim them. I'm waiting for this to start all over again this year. I actually called them at the end of March to say that the RTI info they would receive in April would be wrong and I gave them my correct income. They've still used RTI though and not I have to wait for them to send me the review forms so I can phone them up, again, and give them exactly the same figures as I gave them in March.

Darksparkle

_shel wrote: »

So if it is income replacement insurance surely it is income?

There is a differenc between being income and being income for tax credit purposes. For tax credits it needs to be taxable which this type of insurance isn't

https://www.citizensadvice.org.uk/tax/what-is-taxable-income/taxable-and-non-taxable-income/#h-non-taxable-income

Other types of income which are non-taxable and can be ignored for tax purposes include:
insurance benefits paid to you if you are sick, disabled or unemployed to meet your financial commitments, for example, benefits paid under mortgage protection insurance, permanent health insurance, payment protection (creditor) insurance and long-term care insurance

densol_2

It depends on the scheme and if its for an injury or disability caused by work in many cases ?

dave030445

Darksparkle wrote: »

There is a differenc between being income and being income for tax credit purposes. For tax credits it needs to be taxable which this type of insurance isn't

https://www.citizensadvice.org.uk/tax/what-is-taxable-income/taxable-and-non-taxable-income/#h-non-taxable-income

Other types of income which are non-taxable and can be ignored for tax purposes include:
insurance benefits paid to you if you are sick, disabled or unemployed to meet your financial commitments, for example, benefits paid under mortgage protection insurance, permanent health insurance, payment protection (creditor) insurance and long-term care insurance

My PHI is taxable income