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  • FIRST POST
    • berty9381
    • By berty9381 6th Dec 17, 4:05 PM
    • 6Posts
    • 1Thanks
    berty9381
    critical illness payout, will this affect my tax credits?
    • #1
    • 6th Dec 17, 4:05 PM
    critical illness payout, will this affect my tax credits? 6th Dec 17 at 4:05 PM
    hi my husband has been diagnosed with MS, we have just had a critical illness payout and im just wondering what effect this will have on my benefits? i currently get child tax and my husband gets working tax. do we need to declare this to the tax credits?
Page 1
    • Darksparkle
    • By Darksparkle 6th Dec 17, 4:20 PM
    • 5,050 Posts
    • 3,287 Thanks
    Darksparkle
    • #2
    • 6th Dec 17, 4:20 PM
    • #2
    • 6th Dec 17, 4:20 PM
    My understanding is that these payouts are non taxable therefore you wouldn!!!8217;t declare it to tax credits.
    • McKneff
    • By McKneff 6th Dec 17, 4:47 PM
    • 35,996 Posts
    • 46,351 Thanks
    McKneff
    • #3
    • 6th Dec 17, 4:47 PM
    • #3
    • 6th Dec 17, 4:47 PM
    Check with hmrc. Dont rely on randon answers on here .
    Last edited by McKneff; 07-12-2017 at 9:56 AM.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
    • marliepanda
    • By marliepanda 6th Dec 17, 4:59 PM
    • 5,618 Posts
    • 11,767 Thanks
    marliepanda
    • #4
    • 6th Dec 17, 4:59 PM
    • #4
    • 6th Dec 17, 4:59 PM
    Check with Dwp. Dont rely on randon answers on here .
    Originally posted by McKneff
    DWP Won't be very helpful. HMRC might be best...
    • Darksparkle
    • By Darksparkle 6th Dec 17, 6:57 PM
    • 5,050 Posts
    • 3,287 Thanks
    Darksparkle
    • #5
    • 6th Dec 17, 6:57 PM
    • #5
    • 6th Dec 17, 6:57 PM
    Check with Dwp. Dont rely on randon answers on here .
    Originally posted by McKneff
    Be as well just shutting down this forum then.
    • Alice Holt
    • By Alice Holt 6th Dec 17, 7:39 PM
    • 2,020 Posts
    • 2,339 Thanks
    Alice Holt
    • #6
    • 6th Dec 17, 7:39 PM
    • #6
    • 6th Dec 17, 7:39 PM
    In my experience Darksparkle does not do "randon answers" (or even random answers!

    She gives very helpful and considered answers (correctly spelt).

    Certainly OP please don't take up McKneff's suggestion of contacting the DWP!!

    For Tax Credits there is no capital limit so the value of any savings/capital is ignored. However, any taxable income (over 300) from savings and investments is taken into account as investment income.

    This may be helpful:
    https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/investment-income/

    You may wish to check with HMRC (not the DWP) if any interest income resulting from the critical illness payout can be disregarded for Tax Credits.
    • Darksparkle
    • By Darksparkle 6th Dec 17, 8:53 PM
    • 5,050 Posts
    • 3,287 Thanks
    Darksparkle
    • #7
    • 6th Dec 17, 8:53 PM
    • #7
    • 6th Dec 17, 8:53 PM
    In my experience Darksparkle does not do "randon answers" (or even random answers!

    She gives very helpful and considered answers (correctly spelt).

    Certainly OP please don't take up McKneff's suggestion of contacting the DWP!!

    For Tax Credits there is no capital limit so the value of any savings/capital is ignored. However, any taxable income (over 300) from savings and investments is taken into account as investment income.

    This may be helpful:
    https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/investment-income/

    You may wish to check with HMRC (not the DWP) if any interest income resulting from the critical illness payout can be disregarded for Tax Credits.
    Originally posted by Alice Holt
    Thank you Alice.
    • McKneff
    • By McKneff 7th Dec 17, 11:11 AM
    • 35,996 Posts
    • 46,351 Thanks
    McKneff
    • #8
    • 7th Dec 17, 11:11 AM
    • #8
    • 7th Dec 17, 11:11 AM
    Sorry Op.
    Obviously i made a mistake and i have rectified it .

    Senior moment.
    make the most of it, we are only here for the weekend.
    and we will never, ever return.
    • marliepanda
    • By marliepanda 7th Dec 17, 11:21 AM
    • 5,618 Posts
    • 11,767 Thanks
    marliepanda
    • #9
    • 7th Dec 17, 11:21 AM
    • #9
    • 7th Dec 17, 11:21 AM
    I don't think McKneff was being flippant about the advice given on this forum, rather making sure people check with the (correct!) body as well.

    Whilst DarkSparkle usually gives fantastic advice, if there is a mistake in the advice given, either of her own making or due to inaccurate info in the OP, saying 'oh well someone on a forum said it was okay so I assumed it was' won't help.
    • PersianCatLady
    • By PersianCatLady 2nd Jan 18, 7:56 PM
    • 456 Posts
    • 412 Thanks
    PersianCatLady
    hi my husband has been diagnosed with MS, we have just had a critical illness payout and im just wondering what effect this will have on my benefits? i currently get child tax and my husband gets working tax. do we need to declare this to the tax credits?
    Originally posted by berty9381
    If neither you nor your husband will be working after the CI payment then I would have thought that the WTC will stop as well.
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