Is this taxable?

[willowtree]

Hi
I am new to this forum and initially posted this question under a different area. As there have been no replies I wondered if I might have more success here under 'General'.
Any replies or suggestions most welcome.
I am fortunate enough to have been granted a means tested payment from a charity to help with the cost of raising my child single handedly. It is referred to as a Termly maintenance allowance (and is a few hundred pounds) by the said charity and, as the phrase suggests, is paid 3 times a year in line with school term times i.e. september, january & may.
I claim tax credits and also do tax returns as I am self employed.
Do I need to declare these payments and therefore pay tax on them and, does anyone know if my tax credits would be reduced, bearing in mind they are means tested and take into account my earnings and tax credit payments?

Thank you very much for any help you can offer,

[pawncob]

No it's not taxable. Opinion is based on HMRC advice regarding EMA, but same principle applies. As it's akin to tax credits, they shouldn't be affected.

http://www.hmrc.gov.uk/manuals/dmgmanual/html/dmg24001/05_0026_DMG24034.htm

http://www.hmrc.gov.uk/taxcredits/start/who-qualifies/workingtaxcredit/work.htm

http://www.direct.gov.uk/en/Parents/Schoolslearninganddevelopment/Optionsafterschool/DG_067577

[willowtree]

Thanks for the reply and useful links