lump sum for missed holiday will i lose benefits?

stevemLS

I can't see any reason why it wouldn't be treated as income, be taxed and potentially affect any means tested benefits.

specialboy

lumpaywk wrote: »

Thanks for the advice but it's true, the issue isn't if I will get it but how can I keep it as opposed to the government.

No, the issue is how can you manage on your own for a few weeks without needing so much assistance, why should you get housing benefit if you can afford to pay the rent yourself? The governments money is taxpayers money.

pmlindyloo

stevemLS wrote: »

I can't see any reason why it wouldn't be treated as income, be taxed and potentially affect any means tested benefits.

You may be right but this is not earnings. The OP has not done any work and then been paid for that work. It is not a bonus. It is really a kind of compensation because her employer has messed up and now seems to be compensating the OP because she did not take the holidays. Therefore it is possible that it would be treated as capital and unless this took the OP over the limit then HB would not be affected.

The OP hasn't answered how this would be paid - put on the pay slip/liable to tax etc or paid separately. Perhaps the OP doesn't know yet.

As I have previously said, I really don't know the answer to this but I suspect it will depend on what it is called and how the employer rectifies the payment on their own 'books'.

The OP said that they have given vouchers before when they 'messed up' something else. I wonder how this was put down in their accounts?

tomtontom

stevemLS wrote: »

I can't see any reason why it wouldn't be treated as income, be taxed and potentially affect any means tested benefits.

I agree - the OP has in effect worked compulsory overtime, which would affect benefit entitlement.

bloolagoon

I don't know how HB would deal with this but when I was made redundant I had holiday pay. This was subject to tax and NI from HMRC.

pmlindyloo

bloolagoon wrote: »

I don't know how HB would deal with this but when I was made redundant I had holiday pay. This was subject to tax and NI from HMRC.

Holiday Pay is ignored for means tested benefits provided your claim is after your job has ended (eg. redundancy)

This is not the same as the OP's situation.

This is not holiday pay. The OP did not take the holiday. The OP has not stopped working.

http://www.turn2us.org.uk/information__resources/benefits/working_or_looking_for_work/redundancy.aspx

Interesting the comment about this would be looked upon as compulsory overtime. Not sure how this could be when no work was done and therefore no renumeration (spelling?) paid for it.

Might be better for the holiday to be 'rolled over' to next year.

Would be interesting to see HousingBenefitOfficer's 'take' on this.

Just will add that I am not commenting on the morality of OP receiving this money - just how the council would view the payment - capital or income.