Does receipt of a lump sum impact working tax and child tax credits?

amberspyglass Posts: 11 Forumite

1 February 2023 at 9:17PM in Benefits & tax credits

Hi there,

I live in Glasgow and work for the council. As part of our equal pay settlement all council workers will be receiving a one off lump sum payment in the spring. No-one is sure how much exactly this will be but it could be as much as £10,000. Obviously I need to inform HMRC but does anyone know how this would impact my child and working tax credits? Is it counted as income, would my benefits stop? Does anyone have experience of anything like this?

Thanks in advance ☺

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Does receipt of a lump sum impact working tax and child tax credits?

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