Do I need to declare a £1000 ppi payment?

Kris35

I'm on universal credit.
Thankyou.

sammyjammy

Only if it takes you above the £6k savings threshold

Kris35

Thanks a lot.

Tudor01

Hello. I'm in a similar situation having received a payout of £800 from Barclays. I knew about the £6000 savings thing, but I also thought the 'interest' part of the compensation needed to be declared as it is considered income? 
Have tried looking for info on GOV website but no joy. 
Thanks

sammyjammy

As an aside to the question you may be able to claim back the tax on the interest, google form R40

calcotti

Tudor01 said:

Hello. I'm in a similar situation having received a payout of £800 from Barclays. I knew about the £6000 savings thing, but I also thought the 'interest' part of the compensation needed to be declared as it is considered income? 
Have tried looking for info on GOV website but no joy. 
Thanks

According to this https://www.litrg.org.uk/latest-news/news/180502-had-ppi-claim-and-low-income-if-so-read for UC the whole payment (including the interest element) is treated as capital. See very end of the article.
Like you I haven’t found anything on gov.uk.

Tudor01

calcotti said

According to this https://www.litrg.org.uk/latest-news/news/180502-had-ppi-claim-and-low-income-if-so-read for UC the whole payment (including the interest element) is treated as capital. See very end of the article.
Like you I haven’t found anything on gov.uk.

Thanks for that article and your research. I will contact UC so that they can advise me on exactly what to.do.
Many thanks again.

Tudor01

sammyjammy said:

As an aside to the question you may be able to claim back the tax on the interest, google form R40

Thank you.

Kris35

Tudor01 said:

calcotti said

According to this https://www.litrg.org.uk/latest-news/news/180502-had-ppi-claim-and-low-income-if-so-read for UC the whole payment (including the interest element) is treated as capital. See very end of the article.
Like you I haven’t found anything on gov.uk.

Thanks for that article and your research. I will contact UC so that they can advise me on exactly what to.do.
Many thanks again.

Tudor, can you let us know please. Thankyou.

poppy12345

Tudor01 said:

calcotti said

According to this https://www.litrg.org.uk/latest-news/news/180502-had-ppi-claim-and-low-income-if-so-read for UC the whole payment (including the interest element) is treated as capital. See very end of the article.
Like you I haven’t found anything on gov.uk.

  I will contact UC so that they can advise me on exactly what to.do.

Do be aware that they don't always give the correct advice.

Tudor01

Update:
I put a message on my journal informing them that I had received a ppi compensation payout, and would this be considered income on UC? I was then asked to give the amount I received and the date I received it, so I did this.
I was then told that the amount would be deducted from my UC award for this assessment period, but my award would return to normal on the next assessment period.
I questioned whether the whole amount should be considered or just the interest. The response was "The entire amount would be considered as income under Universal Credit rules."
So, to summarize, it seems PPI payouts are deducted £1 for £1 from Universal Credit entitlement... which for me means zero award this AP.
Hope this helps others.