Loss of earnings insurance claim, taxable?
I have a self employed client who was injured in a road accident, they have since received compensation for loss of earnings. Is this taxable? My feeling is yes, but client tells me that solicitor has stated that as compensation was below £3,000 it is not taxable. Any views.
Not taxable
Just come across your question when researching this matter. I came across http://www.hmrc.gov.uk/manuals/bimmanual/BIM40105.htm. So not taxable. During my research I didn’t come across anything regarding the £3,000 threshold.