Universal Credit and PPI Tax Refund

rubyroo88

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?

Dazed_and_C0nfused

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?

Tax wasn't deducted from PPI refunds, presumably you are referring to the statutory interest paid alongside the PPI refund?

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.

rubyroo88

Dazed_and_C0nfused said:

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?

Tax wasn't deducted from PPI refunds, presumably you are referring to the statutory interest paid alongside the PPI refund?

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.

Yes, I did mean the statutory interest. 

Do you know if they will take 55p off every £1.00 I receive?  

gbhxu

Dazed_and_C0nfused said:

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?

Tax wasn't deducted from PPI refunds, presumably you are referring to the statutory interest paid alongside the PPI refund?

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.

It wasn't initially. However, 20% was taken off later on

Icequeen1

rubyroo88 said:

Dazed_and_C0nfused said:

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?

Tax wasn't deducted from PPI refunds, presumably you are referring to the statutory interest paid alongside the PPI refund?

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.

Yes, I did mean the statutory interest. 

Do you know if they will take 55p off every £1.00 I receive?  

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.