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Universal Credit and PPI Tax Refund
rubyroo88
Posts: 4 Newbie
I'm on Universal Credit and also receive LCWRA , I'm going to apply for my PPI Tax Refund is this classed as income and do I have to inform them?
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Comments
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Tax wasn't deducted from PPI refunds, presumably you are referring to the statutory interest paid alongside the PPI refund?rubyroo88 said:I'm on Universal Credit and also receive LCWRA , I'm going to apply for my PPI Tax Refund is this classed as income and do I have to inform them?
It isn't income for tax purposes but if you are claiming UC when you receive a tax refund I believe you have to declare the refund to DWP.
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Yes, I did mean the statutory interest.Dazed_and_C0nfused said:
Tax wasn't deducted from PPI refunds, presumably you are referring to the statutory interest paid alongside the PPI refund?rubyroo88 said:I'm on Universal Credit and also receive LCWRA , I'm going to apply for my PPI Tax Refund is this classed as income and do I have to inform them?
It isn't income for tax purposes but if you are claiming UC when you receive a tax refund I believe you have to declare the refund to DWP.
Do you know if they will take 55p off every £1.00 I receive?0 -
It wasn't initially. However, 20% was taken off later onDazed_and_C0nfused said:
Tax wasn't deducted from PPI refunds, presumably you are referring to the statutory interest paid alongside the PPI refund?rubyroo88 said:I'm on Universal Credit and also receive LCWRA , I'm going to apply for my PPI Tax Refund is this classed as income and do I have to inform them?
It isn't income for tax purposes but if you are claiming UC when you receive a tax refund I believe you have to declare the refund to DWP.0 -
Whether it counts as income depends on whether you were in paid work in the year the refund relates to. If you were not in paid work, then it doesn't count as income. If you were, then it is caught as employed earnings and would be subject to the 55p taper.rubyroo88 said:
Yes, I did mean the statutory interest.Dazed_and_C0nfused said:
Tax wasn't deducted from PPI refunds, presumably you are referring to the statutory interest paid alongside the PPI refund?rubyroo88 said:I'm on Universal Credit and also receive LCWRA , I'm going to apply for my PPI Tax Refund is this classed as income and do I have to inform them?
It isn't income for tax purposes but if you are claiming UC when you receive a tax refund I believe you have to declare the refund to DWP.
Do you know if they will take 55p off every £1.00 I receive?1
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