Income protection scheme

Allanj104

hi, Am hoping someone has come across this problem before.I had worked for a major retail company for years,had to have a operation on my back,off sick for months but had to make a decision that I could not work again.Was told that the company did a income protection scheme,long story short qualified for this scheme but had to be dismissed from the company before the policy kicked in.The insurance company that pay me have been very good (nothing to do with my x employer but am paying tax on my monthly income they give me 50% of my wages I use to be on.The problem now is I don’t work for anyone so don’t have a paye number and no ref number etc so the tax man can’t do anything .The company that pay me says they will generate a end of year certificate think it’s a p60 and send I’ve to send it to the tax man but do I need to do a self accesment which I’ve never done .The tax man does not know what to do I don’t know what to do anyone had problems with this before
thx Allan

DullGreyGuy

Insurance payouts are not normally taxable, its one of the reasons policies are always below 100% of your income else there'd be a major moral risk that you go off sick and get more take home pay as there is no tax

Allanj104

Thx for reply it’s the tax am trying to claim back 20% tax am paying on my “wages” 

Nearlyold

As far as I recall income from an income protection scheme is only "Tax Free" in proportion to the % of the total premium due to the insurer paid by the Employee.

If 100% of the premium was covered by the employer, then 100% of the PHI income is assessed for tax along with any other taxable income in the normal way against the personal allowance.

Allanj104

As this is my only income I am below the threshold of my tax code 12570 but am paying 20% tax on that so I think I have a tax rebate coming but like I said how do I claim it ?
thx Allan