When making a personal injury claim, you can sometimes receive interim payments before your claim is finalised. This can be helpful if you’ve got immediate costs that need covering.
Our personal injury solicitors specialise in injury claims and could help you to secure an interim payment if necessary. Please read on to learn more or contact us on 0800 652 1345 for a free review of your claim.
What are interim payments in a personal injury claim?
An interim payment is used to help you cover any costs you might incur whilst your personal injury claim is progressing. Your solicitor can request for an interim payment to be paid before your final settlement amount is agreed upon. Interim payments can be used to:
- Pay for private medical treatment. This could include costs linked to your rehabilitation i.e. physiotherapy.
- Cover any shortfall in your income because your injuries have prevented you from working.
- Pay for any care requirements you might need.
- Pay for the cost of travelling to a hospital or GP practice for treatment.
- Cover the cost of making changes to your home (or vehicle) to help you cope with your injuries.
Your solicitor may request a single interim payment or ongoing payments until your claim is settled. This will depend on your ongoing needs and will be assessed as your case progresses.
When will an interim payment be made?
If your case is accepted by one of our personal injury solicitors, they’ll review your case with you in detail. They’ll look at what impact your injuries have already had and how they might affect you in the future. Then they’ll look at the financial impact your injuries could have. If it looks like you may need an interim payment, your solicitor could formally request one.
Usually, an interim payment can only be requested if the defendant in your case has accepted that they were liable for your accident and your injuries. However, if your case goes to court (which is quite unusual for personal injuries), your solicitor might ask the court to enforce an interim payment if:
- The defendant admits liability in court after hearing evidence.
- It is likely that you are going to win the court case.
- You have an urgent medical bill or similar that needs to be paid.
- The amount you’re asking for is reasonable and less than the total compensation you’re claiming.
If you would like to check if you could get an interim payment before your compensation claim is settled, please get in touch.
What amount can be paid as an interim payment?
The amount paid as an interim payment will vary from case to case. The severity of your injuries and your personal situation will be factors that are used to decide how much you’ll be paid early.
Importantly, any interim payment will be decided by how much compensation you’re claiming in total. They must make up a reasonable proportion of the total. When asking for an early payment, your solicitor will consider:
- Any immediate medical or rehabilitation costs.
- How much income you’re losing at present.
- Any equipment you might need to help you deal with your injuries.
- If modifying your home will make it easier for you to cope i.e. installing ramps or handrails to make it easier for you to be independent.
If your claim is accepted, your solicitor will assess whether an interim payment is necessary and advise you about your options. Please get in touch if you’d like to know more.
Do I pay tax on interim payments?
Any personal injury compensation that’s awarded is tax-free. That’s true whether you are paid a lump sum or instalments. As such, regardless of how many interim payments you receive, you will not have to pay tax on them.
Are my benefits affected by interim payments?
There may be an impact on your eligibility to claim benefits if you’re paid interim payments. This is something your solicitor will discuss with you when reviewing your case.
Also, if you have claimed any benefits as a result of your injuries, this might affect the amount paid as an interim payment. For example, if you claimed unemployment benefit because your injuries stopped you from working, this would be factored into any early payment for lost earnings.
You needn’t worry too much about this as our solicitors have vast experience with claiming interim payments. If you have any concerns at all, your solicitor will review them with you before proceeding.
Will my final compensation payment be affected by interim payments?
When your claim is settled, any interim payments you’ve received will be deducted from your final compensation payment. However, you won’t be paid less overall.
It’s important to remember that interim payments are only necessary if you have immediate costs to cover. Although they do reduce your final lump sum payment, they will help you to cope with your injuries and could help you to recover sooner. Without them, you may have put off important treatment or buying equipment to make life easier.
If your case is taken on, your solicitor will review everything with you to see if interim payments will help you or not.
Discuss your claim with us today
We hope this article about interim payments in personal injury claims has been useful. If you are thinking about claiming damages after an accident that was not your fault, please get in touch. Our team will review your case for free and provide legal advice on your chances of being compensated.
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