Non-taxable income

Child related

  • Child Benefit
  • Child Tax Credit
  • Child Trust Fund
  • Maintenance payments received given by a civil partner or spouse
  • Maternity Allowance
  • Maternity grants received by Sure Start
  • One-parent Benefit only if a claim was made before April 1997
  • Childcare vouchers – limits do apply
  • Guardian’s Allowance
  • Adoption allowances received through a local authority or some adoption agencies
  • Foster care receipts – limits do apply
  • Additional child dependency payments paid with State Retirement Pension Incapacity Benefit Widowed Parent’s  and Carer’s Allowance
  • Clothing and School uniform grants
  • Fares for School journeys
  • Young Person’s Bridging Allowance

Work related

  • Employment and Support Allowance which are income related
  • Training courses which are work related
  • General health costs including prescription costs
  • Unemployment pay from trade unions and strike pay strike pay
  • Student loans
  • Educational grants including higher education student support and maintenance allowance
  • Back to Work Bonus
  • Compensation for the loss of a job, contractual and statutory redundancy payments up to the first £30,000 received.
  • Insurance policy benefits for unemployment paid to cover living costs such as Payment protection and mortgage protection insurance.

Personal Finance

  • The interest supplement part of a tax rebate through PAYE
  • Working Tax Credit
  • NS&I – National Savings and Investment Certificates
  • ISA’S – Individual Saving Accounts
  • Particular profits and bonuses from life assurance policies
  • National Lottery winnings
  • Betting for example football pools and horse racing
  • Prizes received from Premium bonds
  • Social Care Crisis and budgeting loans
  • Social Care Fund Community care grants
  • Tax Reserve Certificates
  • Purchased annuities – capital element of the amount you receive
  • Investment bonds and Insurance policy withdrawals up to 5% of the amount initially invested

Pensions

Particular pensions including:-

Armed Forces disability pensions

Voluntary pensions which are not associated to a previous employer and to a past job and are paid into on an annual basis

Retirement pension granted due to an injury at work

  • Pension payments made as a lump sum up to a certain limit of the capital value
  • Pension Credit compensation taken out between 29/04/1988 and 30/06/1994
  • Interest for mis-sold personal pensions taken out between 29/04/1988 and 30/06/1994
  • War Disablement Pension
  • War Widow’s/Widower’s pension
  • War orphan’s pension

Legal

  • Personal injury compensation or damages in any form and any interest incurred up to the time of a court judgement
  • Financial loss allowance for Juror’s who are employed
  • Bereavement payments
  • Funeral expenses payments

House related

  • Local Authority home improvement grants
  • Local Authority housing grants
  • Housing Benefit
  • Council Tax Benefit
  • Warm Front Grant in England
  • Warm Homes Grant in Northern Ireland
  • Energy Assistance Package in Scotland
  • Winter Fuel Payments
  • Cold Weather Payments
  • Rent a Room scheme  up to the £4250 tax free limit
  • Over 75’s TV licence payments

Illness and Disability

  • Insurance policy benefits for sickness or disability paid to cover living costs such as long term care insurance and permanent health insurance
  • Disability Living Allowance
  • Short-term lower rate Incapacity Benefit paid for the first 28 week period
  • Industrial Injuries Exceptionally Severe Disablement Allowance and Disablement benefit
  • Industrial Injuries Constant Attendance and Reduced Earnings Allowance
  • Severe Disablement Allowance for claimants who made a claim before April 2001
  • Hospital Travel Scheme travelling expenses