declaring endowment payment on working tax credit form

frankiejk · 17 July 2012 at 9:40PM

Can anyone help me, my endowment policy has just finished its 25 year term and paid out. do I have to declare this on my form for worafking tax credit. Any help would be much appreciated.

Simon_gloster · 17 July 2012 at 9:49PM

Go to the benefits board for a firm answer, however common sense says a change in circumstances ie windfalls etc can impact your award.

You are allowed a certain amount until rhe benefits are affected...how much matured?

frankiejk · 18 July 2012 at 4:01PM

thanks for that simon, the amount is £30,000. Sounds like a lot but I am divorced with two dependant children, no maintenance to speak of and a minimum wage job, at least £10,000 has already gone on debts hand overdraft so although don't want to be greedy re working tax credits don't want to lose out either.

dunstonh · 18 July 2012 at 4:30PM

The value of the endowment does not need to be declared whilst it is an endowment. However, upon maturity, it does need to be declared for relevant means tested benefits (that consider capital) unless it is used for repaying a mortgage.

sammyjammy · 18 July 2012 at 4:32PM

If its nto being used to repay a mortgage then yes you should declare it, they take it into accoount via the interest received only and assume £40 per £1000 of savings so if you have £20,000 left it will reduce your annual benefit by £800. Is it only WTC you are claiming? No housing benefit etc?