Tax on PHI Payments

strawberrymivvy

strawberrymivvy said:

dave030445 said:

Jo_King wrote: »

Hello,

I'm hoping someone will have the knowledge to get me out of my befuddlement on this.

My employer provides free PHI, on the condition of signing up to the work pension. It might be worth adding that my employer is a registered charity, so isn't liable for corporation tax (as I understand it).

After an injury I had to reduce my hours. I now get my salary for the days I work, and a PHI payment for the days I'm no longer able to work. This is all processed by work's Pay Roll department.

The question is, should the PHI element be taxed? I've found conflicting information online

Thanks for your help!

Mines taxed. But you are right there is loads of conflicting info online.
Even CAB online have it wrong as they say all PHI's are tax free.

Did you get any joy after about tax on this payment? I have monthly phi and mine is taxed 

HMRC told me if employer paid the insurance the claimant pays the tax on claiming x

FrazzledBrain1966

Hi all 👋 
 Newbie here
I've been going through the hmrc guide and info on this thread but can anyone tell me in lay terms the following.

I'm self employed. Been unable to work for 4 months due to an accident whilst working. I have been receiving a payout from my business insurance, personal accident element. Due to total temporary disablement.
Due to start a graduated return soon but income will be minimal The personal accident insurance will drop to half benefits. Which I'm thankful for.
I have had fit notes to cover all 

I've read through the guides but can anyone tell me whether the insurance payments I've received will be taxable.

I haven't claimed any benefits other than working tax credits which I've claimed long term and I'm below the 28 weeks notification for.
Do I have to declare my insurance receipts to WTC as income ?

Thank you