Hi everyone
Was recently successful in claiming a PPI Refund and having spoken to Tax Credits today, they have advised that the interest element of this refund, which amounted to £4,300 will be classed as income and added to my income for the year. I am aware that I will have to pay tax on this payment too and have been told that I will have to complete a self assessment in April to do this. Have wrote to HMRC Tax regarding this.
The money was put towards paying off a loan so now I am left with a tax bill and Tax Credits thinking my income is a lot higher than it actually is for this year.
Has anyone else been in this situation. Is my tax credit award likely to be reduced substantially. I didn't realise any of this when I actually put a claim in for PPI Refund so beware.
Any comments appreciated. Many Thanks
Was recently successful in claiming a PPI Refund and having spoken to Tax Credits today, they have advised that the interest element of this refund, which amounted to £4,300 will be classed as income and added to my income for the year. I am aware that I will have to pay tax on this payment too and have been told that I will have to complete a self assessment in April to do this. Have wrote to HMRC Tax regarding this.
The money was put towards paying off a loan so now I am left with a tax bill and Tax Credits thinking my income is a lot higher than it actually is for this year.
Has anyone else been in this situation. Is my tax credit award likely to be reduced substantially. I didn't realise any of this when I actually put a claim in for PPI Refund so beware.
Any comments appreciated. Many Thanks