LOL and UK Tax
Thread Starter
Join Date: Apr 2000
Location: Mostly Harmless
Posts: 101
Likes: 0
Received 0 Likes
on
0 Posts
LOL and UK Tax
Hi folks
Over 4 years ago, I fell ill and 2 years ago, CX terminated my contract. The good Dr C was able to assist in a LOL claim which was duly paid. Fast forward to now and I'm filling in my UK tax return for 11/12 and I need to sort out the status of the payment. I'm UK resident.
The LOL payout has been of an enormous help. I tried to get jobs after CX in other walks of life but without success. I tried claiming benefits but couldn't. Ever the resourceful, I started my own business (DcR Computer) and now keep the proverbial wolf from the door. My illness still means I cannot take on large responsibilities, but the bottom line is that having tried what I can, I'd really not like to have to pay HMRC almost half of my payout.
There's not much to go on in the COS. As far as I'm aware, there was nothing removed from my pay or paid on my behalf on a monthly basis. I believe the payouts come from a form of trust fund but this is merely a rumour.
Can anyone in the know please point an ex AOA member in the right direction? Many thanks.
All the best
BB
Over 4 years ago, I fell ill and 2 years ago, CX terminated my contract. The good Dr C was able to assist in a LOL claim which was duly paid. Fast forward to now and I'm filling in my UK tax return for 11/12 and I need to sort out the status of the payment. I'm UK resident.
The LOL payout has been of an enormous help. I tried to get jobs after CX in other walks of life but without success. I tried claiming benefits but couldn't. Ever the resourceful, I started my own business (DcR Computer) and now keep the proverbial wolf from the door. My illness still means I cannot take on large responsibilities, but the bottom line is that having tried what I can, I'd really not like to have to pay HMRC almost half of my payout.
There's not much to go on in the COS. As far as I'm aware, there was nothing removed from my pay or paid on my behalf on a monthly basis. I believe the payouts come from a form of trust fund but this is merely a rumour.
Can anyone in the know please point an ex AOA member in the right direction? Many thanks.
All the best
BB
Join Date: Jul 2005
Location: Hong Kong
Posts: 1,117
Likes: 0
Received 0 Likes
on
0 Posts
Hi BB. Sorry to hear about your situation. Ive read your post a few times. Im still not 100% sure what you are trying to achieve.
What information are you actually after? Does this relate to the 2 year salary Loss of Licence payout, or a loss of income policy from the AOA?
You can PM me if you prefer or keep it public and ill see if i can find out more info.
What information are you actually after? Does this relate to the 2 year salary Loss of Licence payout, or a loss of income policy from the AOA?
You can PM me if you prefer or keep it public and ill see if i can find out more info.
Join Date: Apr 2002
Location: HK
Posts: 51
Likes: 0
Received 0 Likes
on
0 Posts
Citizens Advice - Taxable and non-taxable income
I would go visit CAB - AOA are unlikely to be expert in UK tax issues
I would go visit CAB - AOA are unlikely to be expert in UK tax issues
Thread Starter
Join Date: Apr 2000
Location: Mostly Harmless
Posts: 101
Likes: 0
Received 0 Likes
on
0 Posts
Thank you for the prompt replies, and yes, I didn't make myself clear. In short, I don't want to pay 40% of my lifeline to the UK government - but will if I have to - and am looking for information on how the CX LOL fund is funded. If payments were made on my behalf, I believe those are taxable but there's no info available and nothing came from my pay slip.
However, and I'm grateful to freehills for the steer, certain compensation payments are exempt. There is a CAB in town and I'll make an appointment tomorrow.
In the mean time, if anyone could provide info on where the funds come from for the LOL payment, that would help immensely. Moreover (good ISS word), when I have a decision I'll post back in case this is of any use to others.
All the best
BB
However, and I'm grateful to freehills for the steer, certain compensation payments are exempt. There is a CAB in town and I'll make an appointment tomorrow.
In the mean time, if anyone could provide info on where the funds come from for the LOL payment, that would help immensely. Moreover (good ISS word), when I have a decision I'll post back in case this is of any use to others.
All the best
BB
Join Date: Jul 2005
Location: Hong Kong
Posts: 1,117
Likes: 0
Received 0 Likes
on
0 Posts
Im not aware of any payments on our behalf. I recently looked into it as it might have conflicted with my Australian Loss of income insurance 75% of salary ratio.
What I did find is that it was not considered as income but rather as an insurance policy payout. I was also told that if I claimed a tax deduction for the premium paid then the payout would be taxed in Australia but if you did not claim the premium then it will be tax free.
I think that you will have to see a tax specialist in your home country to figure that one out.
What I did find is that it was not considered as income but rather as an insurance policy payout. I was also told that if I claimed a tax deduction for the premium paid then the payout would be taxed in Australia but if you did not claim the premium then it will be tax free.
I think that you will have to see a tax specialist in your home country to figure that one out.
Join Date: Dec 2000
Location: Over There
Posts: 740
Likes: 0
Received 0 Likes
on
0 Posts
BB,
CX LOL is self-funded and paid from a fund created by CX. There are no payments made on your behalf CX just calculates the required amounts as a total fund and ensures it is properly funded.
CX LOL is self-funded and paid from a fund created by CX. There are no payments made on your behalf CX just calculates the required amounts as a total fund and ensures it is properly funded.
