Tax credit, Housing benefit, & unexpected bonus

lstar337

Hi I got an unexpected bonus payment on my payslip from my employer this month, it is effectively a double wage for the month.

I'm wondering how this is going to affect my Tax credits and Housing benefit payments. Mostly I am confused by what they mean when the say that tax credits are worked over a years gross income and benefits are worked over a weeks net income.

Housing_Benefit_Officer

lstar337 wrote: »

Hi I got an unexpected bonus payment on my payslip from my employer this month, it is effectively a double wage for the month.

I'm wondering how this is going to affect my Tax credits and Housing benefit payments. Mostly I am confused by what they mean when the say that tax credits are worked over a years gross income and benefits are worked over a weeks net income.

Speak to your Housing Benefit Office. Every Office I have worked for has treated bonuses differently. One office disregarded them completely. One would disregard one off bonuses but not regular bonuses and another would take them into account.

lstar337

blondebubbles wrote: »

For tax credits it really depends on how much we're talking about. What was the income for last year and what is it expected to be this year?

No change in income from last year, we always keep them up-to-date to avoid over/under payments. They have calculated the entitlement from 16,292.64 Gross. With this bonus it will be 17,650.36 Gross.

I understand working tax credit will go down, but then It isn't much anyway.

lstar337

Housing_Benefit_Officer wrote: »

Speak to your Housing Benefit Office. Every Office I have worked for has treated bonuses differently. One office disregarded them completely. One would disregard one off bonuses but not regular bonuses and another would take them into account.

That's positive to hear.

This is certainly a one off, and is listed separately on the pay slip as 'Bonus'. I don't see how they can disregard it though as it will surely be included on my P60 in my gross annual income?

lstar337

blondebubbles wrote: »

Sorry, not sure what you mean that there has been no change?

If you didn't have the bonus last year and did this year then that is a change.

Excuse poor use of language, I meant that it had been previously calculated with an assumed 'no change'.

blondebubbles wrote: »

So was last years income £16292 and this year will be £17650?

If so then your tax credits won't be affected this year as the increase isn't more than £5000.

Really? In the past they have recalculated it based on every little update. I got a small raise last year and they recalculated all of my Tax Credits as soon as I informed them. The raise was only about £100/month.

lstar337

Thank you both for your help.