Do work bonuses affect your benefits?

[juicychops]

at my work they have bonuses at the end of the year. Im on working and child tax credits. If i get a bonus say £500-£1000 are they going to ask for a load of tax credits back at the end of the tax year?

I think bonuses are counted as part of your earnings - they will be included in your end of year P60 total - so when you fill out the form to say what your last years income was you need to include the bonus amount. They won't usually ask for money back but your tax credits for the next year might be reduced - but they might not depending on your total income....

yes.

we got stung last year for this as DH had got his 5yr bonus money (£3000) and also the disturbance allowance twice (nearly £2000)

We ended up owing tax credits £4k so not happy as didnt realise it included the bonus!

its not fair! a bonus is a reward for doing well and working hard. I get hardly anything as it is and im a single parent. If they take my money back off me, money that i work hard for, then thats bang out of order and just stealing in my opinion.

They dare.....

it's frustrating for you that the end of year bonus and the tax credit thing is at the same time.

Dh gets his bonus at Christmas and it gets put into the savings account until the end of the tax year - some of our working tax credits are then taken off the next year - but we have 3 months interest in the bank to offset it.

jicy yes they will include bonus's as income

if you need to pay money back phone them to work out what you can afford, I did that and they were quite reasonable

or call and just ask their advice?

"If they take my money back off me..."

Your money?

Why should a bonus be treated differently from any other income? It just come in a lump sum, but it is still income.

Because its a 'bonus' a reward. You are supposed to benefit from it. Whats the point in getting a bonus if the tax credits people are going to punish you for working hard and getting a little extra by taking it back?

just a thought, I don't know what kind of work you do but is it possible to recieve something other than money? maybe this is really naughty....? but if you work for a small employer you could ask for holiday vouchers or something like that?

But salary is also a hard earned reward -- in exchange for showing up and doing your job. Why is a bonus different?

You are talking like the tax credits are something that are rightfully yours, and how dare the government think they can take some back? Don't forget who gave you that money in the first place. Benefits/tax credits are need based. So people who don't get bonuses need them more than you do.