When it comes to car accident compensation, taxable issues often come into play. People want to know if they did get awarded compensation, whether or not they would lose any of it to the taxman. By getting the answers upfront, it is often easier to focus on moving ahead with a claim.
It’s definitely better to understand where you are in such cases, so you can be fully aware of how a claim works, how much you might be entitled to and whether or not you would receive the full amount. The issue of tax isn’t one every personal claimant thinks about, but if it has occurred to you to learn more, you should definitely think about speaking to someone who has the experience to provide that information to you.
Is your car accident compensation taxable?
The answer is no. Any amount of compensation you may potentially receive will not be subjected to any amount of tax. The length of time it takes to receive this compensation, and the amount you may get, would not be relevant. Furthermore, you wouldn’t pay tax on any interest you would have earned had you received the compensation at the moment you had the accident. This applies if you are given interest on the amount by a court.
Any amount given to cover the ‘lost interest’ would have been calculated to be net of interest before you received it. This means you don’t have to worry about that part of the equation either – making life easier for you in every respect. Of course, you may still have queries or wish to clarify certain things. That’s why we would encourage you to speak to a member of our team so you know what the situation is with regard to your own individual position.
Find out the answers to all your other questions by calling us now
It’s likely this issue of tax isn’t the only thing you need an answer to at the moment. We can provide information to settle any other questions you might have, not just ‘is your car accident compensation taxable?’
With that in mind, grab your mobile and call 0333 500 0993 now, or ring our free enquiry line on 0800 689 0500 to reach Accident Advice Helpline today. Our team can advise you on all matters pertaining to making a no-win, no-fee* claim, which could be possible with the assistance of one of our lawyers.
Category: Car accident claims