Does receipt of a lump sum impact working tax and child 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 ☺
Sign In or Register to comment.
Latest MSE News and Guides

Martin and MSE campaign win

April's 20% energy price guarantee hike postponed

MSE News

Childcare budget boost

More support for children from nine months and those on Universal Credit

MSE News

Energy Price Guarantee calculator

How much you'll likely pay from April

MSE Tools