Will I have to pay tax on my personal independence payment (PIP)?
The DWP say that personal independence payment (PIP) will not count as taxable income, so it will have no effect on the amount of tax you pay. In this regard PIP will be the same as DLA, which is also tax free income.
PIP will also, like DLA be payable whether you are in or out of work and regardless of how many hours you work or how much you earn. However, any physical or mental activities involved in your employment can be taken into account when deciding how many points you score under the PIP assessment.