Income Protection - Providing You With a Tax Free Income
If you have your own income protection plan and make a claim, the income is paid to you with no liability to Income Tax or National Insurance whatsoever. It is a completely tax-free income.
There is no liability to income tax or national insurance for the duration of your claim, no matter how long your claim lasts, even if you are paid an income for many years; your income remains tax-free.
(This is not the case if your employer provides income protection, the benefits paid to you under an employer-paid for income protection scheme will be subject to income tax and national insurance.)
