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Do I need to declare a £1000 ppi payment?

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Do I need to declare a £1000 ppi payment?

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Kris35Kris35 Forumite
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I'm on universal credit.
Thankyou.
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Replies

  • sammyjammysammyjammy Forumite
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    Only if it takes you above the £6k savings threshold
    "You've been reading SOS when it's just your clock reading 5:05 "
  • Kris35Kris35 Forumite
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    Thanks a lot.
  • edited 9 July at 7:59AM
    Tudor01Tudor01 Forumite
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    edited 9 July at 7:59AM
    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
  • sammyjammysammyjammy Forumite
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    As an aside to the question you may be able to claim back the tax on the interest, google form R40
    "You've been reading SOS when it's just your clock reading 5:05 "
  • edited 9 July at 8:52AM
    calcotticalcotti Forumite
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    edited 9 July at 8:52AM
    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.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • Tudor01Tudor01 Forumite
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    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.
  • Tudor01Tudor01 Forumite
    17 posts
    10 Posts
    As an aside to the question you may be able to claim back the tax on the interest, google form R40
    Thank you.
  • Kris35Kris35 Forumite
    114 posts
    Sixth Anniversary 10 Posts Combo Breaker
    Tudor01 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.
  • poppy12345poppy12345 Forumite
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    Tudor01 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.
  • Tudor01Tudor01 Forumite
    17 posts
    10 Posts
    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.
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