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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 14192
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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I receive term disability insurance every month, although I

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I receive long term disability insurance every month, although I live in the uk I worked international and my insurance comes in dollars every month as I am now registered disabled.
Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I am 50 years old and before receiving the monthly benefit I worked for an American oil company. As we are coming to the end of the uk Tax year to submit documents I want to know if I have to pay tax on my monthly payout as an income ?
Assistant: Is there anything else important you think the Accountant should know?
Customer: I now walk with a stick and I am registered disabled my long term disability pays out in the form of a cheque in dollars every month. Do I have to pay uk Tax on my disability payout ?

Hi, Sam here , one of the UK tax Experts here on Just Answer, thank you for your question and I shall reply shortly

Hi

Yes this payment will be treated as taxable income in the Uk so must be declared as foreign income and if in excess of your UK personal allowance will attract UK tax

Thanks

Sam

Customer: replied 4 months ago.
Hi, Thanks for your reply, I had a motorcycle accident in 1999 and was back to full health a year later and continued to work offshore abroad for several years. About 2 years the problems with my right leg returned to the point of looking to have my leg amputated above the knee. The American company. I worked for turned me over to Cigna insurance for my long term disability. Every month they give me 5600 dollars per month that comes in the form of a cheque from America via UPS.I am not really that sure how to fill in my self assessment form. How do I submit to Tax I have no other earnings at all and this payment is to cover my mortgage and living expenses as I have to have morphine two plus times a day I am unemployable.RegardsPeteN.B please find attached monthly cheque

HI Pete

You will have to fill in a paper return as you have foreign income to declare

so you will have the main self assessment form and then the foreign income page to declare this disability payment and you will need to engage a UK accountant if you need representation to complete the return as we can only offer advsie and not represent customers I am afraid as its just an advisory service

Thanks

Sam

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