If you’ve been injured or made ill by someone else’s negligence, you can face considerable financial challenges – from paying for medical bills to loss of income from not working. Compensation is paid to reimburse you for these costs, but it can take time to pursue a successful claim and receive the compensation you’re owed. That’s where interim payments come in.
An interim payment is partial payment of your compensation made earlier than the rest of the money by the defendant (or their insurance company). Interim payments can ease your financial strain and support your recovery before you receive the bulk of your compensation.
If you’ve made a personal injury claim and are seeking compensation, an interim payment can be a godsend. To help you better understand them and your rights, here we explain what an interim payment is for personal injury compensation support. We’ll also look at interim payment eligibility and how interim payments affect your overall compensation.
What is an interim payment?
An interim payment is an early payment of some of the compensation you’re entitled to receive as part of your personal injury claim. It’s intended to provide financial support before the claim is fully settled, ensuring you can cover essential costs without delay which in turn reduces the stress and pressure placed on you.
Crucially, interim payments are not an additional sum on top of your final compensation, they’re deducted from the total amount you’re awarded. Interim payments allow claimants to access funds sooner, which can be a lifeline when faced with urgent expenses.
When are interim payments available?
Interim payments aren’t automatically granted. Certain conditions typically need to be met before they’re paid, including:
- Admission of liability: The defendant must admit responsibility for your injury. This admission demonstrates a strong likelihood that the claim will succeed.
- Urgent financial need: Interim payments are more likely to be granted if you’re facing pressing financial demands, such as medical bills, rehabilitation costs or a loss of income that’s straining your finances.
- Proportionate amount: The amount requested as an interim payment must be a reasonable portion of the overall claim. Courts and insurers will consider the likely final settlement when determining if the requested amount is fair.
- Sensible use: The interim payment should be used to cover pressing costs related to your injury.
If the responsible party disputes liability or refuses to agree to an interim payment, Injury Lawyers 4U can assist in applying to the court for approval. Our team has extensive experience in this process and advocating for our clients’ needs.
What can interim payments be used for?
Interim payments are paid to cover immediate financial challenges, like:
- Medical treatment and rehabilitation: Covering the cost of surgeries, physiotherapy or other essential treatments that aid recovery.
- Lost income: Providing financial support if you’re unable to work due to your injuries.
- Home adaptations: Funding modifications such as wheelchair ramps, stairlifts or accessible bathrooms to make your home safer and more comfortable after an injury.
- Mobility aids: Purchasing equipment like wheelchairs or accessible vehicles.
- Travel costs: Covering travel expenses for ongoing medical appointments or specialist care.
How do interim payments impact your final compensation?
Some claimants worry that requesting an interim payment could reduce their overall compensation. Rest assured, this won’t be the case. Interim payments are simply advanced portions of the total settlement. When the claim is finally resolved, the interim payment amount is deducted from the final compensation, ensuring you receive the full amount you are entitled to.
For example, if you are awarded £50,000 in total compensation and have already received a £10,000 interim payment, the remaining £40,000 will be paid to you upon settlement. Interim payments offer immediate financial relief without affecting the total value of your claim.
Will interim payments affect my benefits or tax?
Understanding how interim payments interact with benefits and tax obligations is important for claimants:
- Tax-free compensation: Personal injury compensation, including interim payments, is entirely tax-free. You won’t need to pay income tax or other levies on these funds.
- Impact on means-tested benefits: Interim payments can affect your eligibility for certain means-tested benefits. For example, receiving a large sum could push your savings above the threshold for benefits like Universal Credit or Housing Benefit.
To protect your benefits, consider setting up a personal injury trust. This legal arrangement allows you to ring-fence your compensation so it doesn’t impact your benefit entitlement.
How can Injury Lawyers 4U help?
Navigating the claims process and securing an interim payment can be complex, but you don’t have to go through it alone.
We specialise in helping clients access the financial support they have a right to during a claim. We can guide you through the whole claims process, negotiate with insurers on your behalf, and make court applications if the other party disputes liability or refuses an interim payment. With our no win, no fee guarantee, you won’t pay us a penny for our help if your claim isn’t successful.
Our goal is to make the claims process as straightforward and stress-free as possible, so you can focus on what truly matters. Your recovery. If you’d like to talk to us, for free, about making a personal injury claim or interim payments, call us on 0333 400 4445 or fill in a contact form.
Frequently asked questions about interim payments
Can I receive multiple interim payments?
Yes, in some cases, claimants may receive more than one interim payment. This is often necessary for ongoing expenses, such as continued medical treatment or rehabilitation. Each payment will be deducted from the final settlement amount.
How quickly can I receive an interim payment?
The time it takes to receive an interim payment can vary depending on your circumstances. In some cases, payments can be arranged within weeks if liability is admitted and the request is straightforward, but it can take longer. Our legal experts will be able to give you a better idea based on the details of your case.
What happens if my case isn’t successful after receiving an interim payment?
If your case is ultimately unsuccessful, you may be required to repay the interim payment. However, this depends on the specific terms agreed upon and the circumstances of the case. At Injury Lawyers 4U, we’ll ensure you fully understand the implications before pursuing an interim payment.
How do I request an interim payment?
It’s not always clear how you can request an interim payment. Whether you should request it from the defendant directly, from their insurer, their legal representative, or from a court. At InjuryLawyers4U, we can help you with the details of an interim payment or early compensation personal injury claim, including how to request it.