Child tax credits and phi payments

strawberrymivvy

Hi....does anyone recieve or know about phi insurance payments? Do they get included in your income total when renewal for child tax credits ? I cant find info on it ..my husband has been let go from work on lo ng term illness ,I work which goes on our income total, child benefit dosnt get included I'm not sure about pip ? I don't think it does then we have a monthly permanent health insurance payment that is taxed before we recieve and contribution esa support group just for single man..I'm unsure what to total up on yearly income ..does anyone know please ? TIA 

calcotti

PIP is not included. 
Contribution based ESA is included. 
I don't know about the PHI. 

strawberrymivvy

Thank you ..I'm still at loss if phi are 😔😔

Margaret_100

Take a look at this link
https://www.gov.uk/guidance/tax-credits-working-out-income
it does not mention PHI but does state under other income to include other taxable income and you have stated your PHI is taxable. 

This link does give contact details for a help line for tax credits.

gingerbreadmen

Hi we get a PHI and the income from it does not get included for the purpose of Tax credits.  But its better to tell them you receive it. 
As a Side point make sure your paying income tax on your Contribution based ESA

whizzywoo

strawberrymivvy said:

Hi....does anyone recieve or know about phi insurance payments? Do they get included in your income total when renewal for child tax credits ? I cant find info on it ..my husband has been let go from work on lo ng term illness ,I work which goes on our income total, child benefit dosnt get included I'm not sure about pip ? I don't think it does then we have a monthly permanent health insurance payment that is taxed before we recieve and contribution esa support group just for single man..I'm unsure what to total up on yearly income ..does anyone know please ? TIA 

Have a look at this information about income which is disregarded for tax credit purposes.  It has much more info than the Gov.uk site. 
There are a whole load of things which don't count, one of them is:
"Payments made under an insurance policy against the risk of the claimant being unable to keep up mortgage repayments on their home, or under a regulated or hire-purchase agreement or a conditional sale agreement, but only to the extent that the payments are used to maintain the mortgage repayments or policy premiums, or any buildings insurance maintained as a condition of the mortgage;"
But I don't think Permanent Health Insurance would be classed that way.

The whole list is here:
https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/disregarded-income/

strawberrymivvy

gingerbreadmen said:

Hi we get a PHI and the income from it does not get included for the purpose of Tax credits.  But its better to tell them you receive it. 
As a Side point make sure your paying income tax on your Contribution based ESA

Hi thanks for your reply ..yes we had a tax bill for esa at end of year cis with phi payments my husband allowance went over..you say you have phi also ..may I ask why it dosnt get included in income ? We have an overpayment on child tax and if this income from phi dosnt get included..it would mean a big drop in our yearly income which would affect this overpayment from last year as we would of been under allowance..Tia xxx

gingerbreadmen

strawberrymivvy said:

gingerbreadmen said:

Hi we get a PHI and the income from it does not get included for the purpose of Tax credits.  But its better to tell them you receive it. 
As a Side point make sure your paying income tax on your Contribution based ESA

Hi thanks for your reply ..yes we had a tax bill for esa at end of year cis with phi payments my husband allowance went over..you say you have phi also ..may I ask why it dosnt get included in income ? We have an overpayment on child tax and if this income from phi dosnt get included..it would mean a big drop in our yearly income which would affect this overpayment from last year as we would of been under allowance..Tia xxx

Its A income that doesn't get included for working out tax credits. "Why" iam not sure myself. 

strawberrymivvy

I phoned tax credits and they said it dosnt get included for income ..then they ask if I pay tax onit I say yes and they said it should be included on yearly income but to go back to company who pay it to check with them first .in other words they dont know 🤔 so that's where I am at now I still dont know 

gingerbreadmen

We pay tax on ours and it still doesn't get included as income. Most income that you pay tax on does get included as income, but there are a few exceptions and PHI is one of them.  

strawberrymivvy

gingerbreadmen said:

We pay tax on ours and it still doesn't get included as income. Most income that you pay tax on does get included as income, but there are a few exceptions and PHI is one of them.  

Finally got somewhere with this ...because employer paid the contribution to this policy and it wasnt deduction on payslip it is taxed ...because its taxed its accountable as it's our replacement income just as if you were still working it's called replacement income for tax credits along with contributions esa its counted I just heard from HMRC ..so now I know what a confusing situation 🙃🙃😑