× Members

Gip settlement and esa contrib

  • Julia
  • Topic Author
  • Away
More
2 days 5 hours ago #308625 by Julia
Gip settlement and esa contrib was created by Julia
I have been receiving old style esa contribution in the support group - I have been in receipt of a group income policy gip via paye from my employer and my esa is taxed accordingly. The insurer and my employer want to make a settlement - my question is will the settlement be classed as pension income if I take it in lumps and therefore my esa will be wiped out or is there something I’m missing?

Please Log in or Create an account to join the conversation.

More
2 days 3 hours ago #308633 by David
Replied by David on topic Gip settlement and esa contrib
Hi Julia

Are you getting legal advice from a professional?
A lot depends on what it states in the settlement document. If you receive income then the DWP will treat it as income. But if you get a lump sum of capital then it will fall under the DWP rules regarding capital.

David

Nothing on this board constitutes legal advice - always consult a professional about specific problems

Please Log in or Create an account to join the conversation.

  • Julia
  • Topic Author
  • Away
More
2 days 1 hour ago #308634 by Julia
Replied by Julia on topic Gip settlement and esa contrib
Hello David - I’m not getting legal advice yet as I’ve got an initial meeting with the employer to find out what the insurance offer is and then I thought I’d get advice on whether it was a good offer or not and what the employer cd possibly add to the settlement to get me off their books. Not sure how to negotiate this really. My other concern is if I take a lump sum as capital but it is broken down into payments does this then get classed as income by my esa contrib and would I lose my claim - it’s an old style one.

Please Log in or Create an account to join the conversation.

More
1 day 10 hours ago #308652 by David
Replied by David on topic Gip settlement and esa contrib
Hi Julia

If it says its capital on the statement then it remains capital. If you are entitled to the capital on a certain date why should they give it to you in instalments?


David

Nothing on this board constitutes legal advice - always consult a professional about specific problems

Please Log in or Create an account to join the conversation.

  • Julia
  • Topic Author
  • Away
More
1 day 9 hours ago #308654 by Julia
Replied by Julia on topic Gip settlement and esa contrib
Hello David - it would possibly be paid in instalments to bring it below the higher tax rate.

Please Log in or Create an account to join the conversation.

More
1 day 6 hours ago #308655 by David
Replied by David on topic Gip settlement and esa contrib
Hi Julia

I think you are going to need some professional financial advice on this one.

David

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: Julia

Please Log in or Create an account to join the conversation.

Moderators: GordonlatetrainBISCatherineChrisDavidAngel
We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.