tex credits

You may not be able to give advice on this subject, but i have tried various means of trying to get an answer from various sources inc tax credit people.

whWhen filling in my tax credit form for the last 5 years i have to had put my ill health pension down as income, as it was deemed given to me due too ill health.
Does anyone know if this situation will still be the case or are there going to be changes? By the way this was not advertised at the time very well by dwp and took me ages to finally get an answer 5 years ago.

skyblue wrote:

You may not be able to give advice on this subject, but i have tried various means of trying to get an answer from various sources inc tax credit people.

whWhen filling in my tax credit form for the last 5 years i have to had put my ill health pension down as income, as it was deemed given to me due too ill health.
Does anyone know if this situation will still be the case or are there going to be changes? By the way this was not advertised at the time very well by dwp and took me ages to finally get an answer 5 years ago.

depending how the pension was awarded it might not be income read here

this is the manual of which pensions are NOT counted as INCOME


www.hmrc.gov.uk/manuals/tctmanual/TCTM04303.htm


the bit that counts is below

pension awarded on retirement through disability caused by injury on duty or by a work- related illness. The amount to be disregarded is the amount by which the pension exceeds what would have been payable if the retirement had been on grounds of ill- health caused other than by an injury or illness. For more information, see EIM74012 in the Employment Income Manual. The Employment Income Manual contains examples showing when a disability pension is likely to be exempt from income tax by virtue of the legislation and thus disregarded for tax credit purposes as well.( Section 644(3) of the ITEPA 2003)


next manual you need is here

www.hmrc.gov.uk/manuals/eimanual/eim74000.htm

Thank you very much for this advise i presume i would need to take it up wiyh a specialist tax adviser.

Thanks again

skyblue wrote:

Thank you very much for this advise i presume i would need to take it up wiyh a specialist tax adviser.

Thanks again

If you call the tax credits help line and tell them you think there has been a mistake and tell them your pension should not be counted as income they will look at it again tell them you had to retire for ill health ... it wont cost nothing and there is no risk at present they have been calling it income .. if you win and they take it out the sums you have less income and your could get more tax credits

unlike dla and esa your claim is not at risk and the amount cant go down only up if you have a case


now regardless of them giving you extra tax credits if they take the pension on as the type they disregard for tax credit calculations (takes a breath)

Is your tax credit claim working tax credits and your partner is working because the moment you say you have an ill health pension (regardless on you getting it disregarded as ioncome) you also have the chance of getting the disability premium added to your claim depending on hours and other stuff ... this does not depend on getting dla care at the higher rate this is for the normal disability premium and it can at times be paid even if your not working but your partner is

it can be paid by the fact your blind and many other things down to the fact that the only contact with medical services is you see a district or CPN nurse regular

Tax Credits advisor have today advised me that my ill health pension is not to be considered as oncome for purposes of Tax Credits.

Does this mean my ill health pension should not be taxed also? I have read the artilces which you have supllied but fing them impossible to understand.

I first received my ill health pension in December 1995 and was due to stress anxitey and ulimately severe depression caused by the work load and responsibility of the posistion i held at a relatively young age.
Thank you though for the advice which i have received some success on .

Many thanks

skyblue wrote:

Tax Credits advisor have today advised me that my ill health pension is not to be considered as oncome for purposes of Tax Credits.

Does this mean my ill health pension should not be taxed also? I have read the artilces which you have supllied but fing them impossible to understand.

I first received my ill health pension in December 1995 and was due to stress anxitey and ulimately severe depression caused by the work load and responsibility of the posistion i held at a relatively young age.
Thank you though for the advice which i have received some success on .

Many thanks

no UNLESS its a war pension or certain services pensions you will pay tax on it, they just discount it as income when working out tax credits, this makes your tax credit award in SOME cases more

you did not answer the other point i put about your partner are they working ? and if so are you getting the disabled allowance. you might be able to get that and if you do get it it £2,000 aprox