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Forum Home  →  Discussion  →  Income support, JSA and tax credits  →  Thread

Tax Credits and treatment of Compensation payment for relocation of job

Ngaryan
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Supervising Solicitor, Greater Manchester Law Centre

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Total Posts: 9

Joined: 6 January 2017

Hi can anyone point me to the Regs in relation to how TCO will treat a compensation payment.

I have someone who is being offered circs £1250 due to re-location of jobs.

They have been given 3 options:

1 - take the lump sum payment in a one-off payment
2 - take the offer and spread over 12 months
3 - decline the lump sum and claim expenses throughout the year.

I can see that this does not fall within the normal compensation payouts and wondering if anyone else has had this scenario and how do HMRC treat this?

Many thanks

Charles
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Accountant, Haffner Hoff Ltd, Manchester

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Total Posts: 473

Joined: 27 February 2019

The general rule is that anything included on this page will be disregarded for tax credits too.

Ngaryan
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Supervising Solicitor, Greater Manchester Law Centre

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Total Posts: 9

Joined: 6 January 2017

thanks, very helpful