Do I need to declare a £1000 ppi payment?

Kris35

What, really? They are taking it all - surely that's not correct!!

Tudor01

Kris35 said:

What, really? They are taking it all - surely that's not correct!!

That's what they wrote in my journal. Im waiting to hear from them regarding how I report it. i.e do I 'report a change' and add it there? Or will HMRC inform them as Barclaycard paid them 20% before they awarded me the sum.
I was shocked too... as I could find nothing written on it except that payouts like this 'might' affect your award...so I thought I would check to be safe.

Kris35

Yes, I thought the "might" was to do with the savings limit. I really don't think this is right. I bet the CAB won't know either. Where I am there's a community law organisation that might be able to help. Maybe you have one in your area. I do t think the person who replied is correct but maybe they are. Wow. 

Tudor01

Hello
Found this article on the 'entitleto' website. Seems to be in line with what I was told.
https://www.entitledto.co.uk/help/Non-work-income-overview-Universal-Credit

Kris35

Tudor01 said:

Hello
Found this article on the 'entitleto' website. Seems to be in line with what I was told.
https://www.entitledto.co.uk/help/Non-work-income-overview-Universal-Credit

Hi Tudor. It doesn't say anything about ppi payments?

calcotti

I can't find a definitive answer on this but I am not convinced that taking the whole amount as income is correct. Under UC income is only taken into account if it is specifically listed as something to be taken into account. If it is not listed then it is ignored. For example income from a lodger is not listed and is ignored when calculating UC entitlement.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/899062/admh5.pdf is the relevant guidance on income. 
I am not convinced that a PPI compensation payment is covered by any of the items listed except possibly for the taxable interest part which could fall under 'Other income that is taxable'. 
However i don't have a definite answer. You could ask DWP to confirm what category of income they are treating the payment under.

Tudor01

Kris35 said:

Tudor01 said:

Hello
Found this article on the 'entitleto' website. Seems to be in line with what I was told.
https://www.entitledto.co.uk/help/Non-work-income-overview-Universal-Credit

Hi Tudor. It doesn't say anything about ppi payments?

I thought perhaps they may view it under the umbrella of 'income protection insurance' or 'mortgage protection insurance'. I don't think that would be right because it's not as a result of a claim, but a refund of payments plus compensation. I did point that out but...

Tudor01

Thanks for the reference Calcotti. I agree that it doesn't seem to add up, but I cant find anything definitive. For me, I have calculated that even if they only take the interest into account, I would still be left with zero or almost zero award for this AP. My husband is self employed, so with his earnings added we would definitely go over. Not sure if it is worth pursuing in my case...but Kris might want to tackle it.
I'm still waiting for an answer to my question re: if I need to manually report this income. 
If I hear anything more I'll post. Or maybe I'll just update when I actually get my statement through for this AP.
Thanks again!

calcotti

Tudor01 said:

Thanks for the reference Calcotti. I agree that it doesn't seem to add up, but I cant find anything definitive. For me, I have calculated that even if they only take the interest into account, I would still be left with zero or almost zero award for this AP. My husband is self employed, so with his earnings added we would definitely go over. Not sure if it is worth pursuing in my case...but Kris might want to tackle it.
I'm still waiting for an answer to my question re: if I need to manually report this income. 
If I hear anything more I'll post. Or maybe I'll just update when I actually get my statement through for this AP.
Thanks again!

Agreed, if the interest element only would result in a zero payment it doesn’t seem worth arguing about because it does seem logical for the interest to be counted.
I’m fairly sure that you will need to report it, I doubt it will get to DWP through RTI.

Kris35

Tudor, are you going to ask them where it definitely says what they told you? I'd love to know how she/he/they know for sure that this is correct. Surely as this is a refund for overpayments and compo, it's ours.