PIP Is it classed as income

in Debt-free wannabe
11 replies 872 views
Hi
Can anyone tell me if PIP is classed as income for debt?
does it need to be included on an income and expenditure form from Capquest
and is it necessary to include your spouse/partner's income if the debt was purely your own?
Thank You
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  • Willing2LearnWilling2Learn Forumite
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    PIP is not counted as taxable income.  The money is for you to spend, due to your health-related expenses.  I would not include it as income for your Capquest I&E form.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • desktopfurydesktopfury Forumite
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    PIP is not counted as taxable income.  The money is for you to spend, due to your health-related expenses.  I would not include it as income for your Capquest I&E form.
    Thank you Willing to learn, 
    do you know the answer to the last question?  is it necessary to include your spouse/partner's income if the debt was purely your own?
    Thank You
  • Willing2LearnWilling2Learn Forumite
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    That all depends on how you share out your income and expenses with your partner.

    If you post up a completed Statement of Affairs (SOA) into this thread, then we can advise you on how you should present the figures to your creditor(s).

    https://www.lemonfool.co.uk/financecalculators/soa.php
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • desktopfurydesktopfury Forumite
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    Thanks, I will do that tomorrow
  • desktopfurydesktopfury Forumite
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    PIP is not counted as taxable income.  The money is for you to spend, due to your health-related expenses.  I would not include it as income for your Capquest I&E form.
    National Debt Line have told me that I should include PIP?
  • Willing2LearnWilling2Learn Forumite
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    It does not count as income for the purposes of the allocation of your income toward debt repayments.  You do, however, include PIP in your SOA...

    If you complete the SOA, then we can take it from there...  :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • desktopfurydesktopfury Forumite
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    Thanks Willing2Learn, sorry I did not get back but was ill over all this. I had previously looked at the national debt  website and their budgeting tool lists different stuff to what the lemonfool site does, what I don't want to do is to give a list to capquest where it shows I can just afford to pay my debts and a bit to them until my situation changes ie I want to pay MY debts as I am doing without any default, like paying the just above the minimum each month and upping the capquest debt from 10 a month to about 30 or 40 a month, I have 50k life insurance ( so does my wife) and I don't want them to make me stop that to pay them more, as if I died they would get the full amount back anyway, does that make any sense to you? Sorry but my meds don't make things any clearer, I am going to stop taking them for 2 days to try and get a clearer head on this.
  • desktopfurydesktopfury Forumite
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    I dont have 30 or 40 a month to do that , but by juggling things around could just about do that, my intention is (at 68) is to find out how to do affiliate marketing online, then I can pay everyone the right amount or even clear them all.

  • edited 2 May 2020 at 9:38AM
    GalloglassGalloglass Forumite
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    edited 2 May 2020 at 9:38AM
    Debt Camel has a useful article on the subject and explains your choice to show/no show PIP as income.
    There are two alternative ways – they both give the same end result. Whichever you choose, you will need to inform your creditors what you are doing and why.
    https://debtcamel.co.uk/should-i-include-dla-money-in-my-incomeexpenditure-sheet/

    Also read the section on "I would like to use some of the money to speed up my DMP"

    The one great principle of the English law is to make business for itself. There is no other principle distinctly, certainly, and consistently maintained through all its narrow turnings. Viewed by this light it becomes a coherent scheme and not the monstrous maze the laity are apt to think it. Let them but once clearly perceive that its grand principle is to make business for itself at their expense, and surely they will cease to grumble.
  • sourcratessourcrates Forumite
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    Just to add to the above, Capquest are just a debt purchasing company, you are under no obligation to share your private financial matters with anyone, least of all a debt collector, your budget is your budget, no one else can dictate to you how you spend your money, or what it can be used for.

    It only becomes an issue if you are in a regulated debt solution such as an IVA/DRO/ or you go bankrupt, for the purposes of debt management, you tell them what payment they will be getting, not the other way around.

    National Debtline/stepchange etc, are very good at what they do, but they tend to offer a more concilitory approach when dealing with creditors, i prefer a more robust stand to be taken, this then avoids questions like this from popping up, benefits such as pip are there for a reason, and that reason is not debt repayment.
    Ex MSE Board Guide.

    More than a third of IVA`s fail....fact.
    Could A Debt Relief Order help you ?
    Never pay a fee for a Debt Management Plan.
    For free non-judgemental debt advice, contact either : Stepchange, National Debtline, or CitizensAdviceBureaux.
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