how a pension payment effects tax credits

ang3

just wondering if any one can help.

I currently receive child tax credit. last year I had the opportunity to cash in my pension with my previous employer. it was approx £9000, but paid 25% tax on it, so roughly received £7800.

I have spoken to child tax credit to do a renewal and they have included this pension amount in last years earnings.

Is this correct and will it now effect my payments for future payments?

I only cashed it in, as was in some debt and needed to pay back family members and bills.

if I had known it was going to effect my payments I would not have cashed it in.

any help would be appreciated.

ang3

Please, is there anyone that knows the answer to this.

I am really worried my money going to stop, and all child tax credits can say is ring back and put complaint in?????

Where is that going to get me????? I am already struggling financially.

Any help!!!!!!

princessdon

It's taxable income, therefore income not capital,

How much it will affect you depends on income, number of children etc.

ang3

Thanks for that

I am pretty much snookered then. As already have an overpayment I am payingback to them.

It is just my nursery fees I am worried bout, as need help with them.

I don't know if would be better coming out of work, and just have my his bands wages. He earns roughly £21300. I was earning £9000, but just increased to £12,000 as had to put daughter in childcare, so needed to increase my hours.

I just dont know what to do. In arrears with mortgage,

I would not have cashed it in, if knew it was going to effect me.

ang3

Ok thanks for that, I will dig out 11/12 earnings as cannot remember and post in a bit.

ang3

Ok, 11/12, joint income was £27,456.00.

12/13 joint income £26828.00

Estimated income 13/14 is £33000.00 (increase due to me increasing my hours )

3 children 2 in school, and 1 in nursery.

Nursery fees 90.00 per week.

I have an overpayment of £8000 from when I advised of a change im my hours after returning from may leave. In error they deleted my husbands income details.

I did appeal, and they admitted their error, but no proof I had informed them of the error, so say i am liable for overpayment.

I. dont know if would be better off me not working, as don't think will get any childcate help. We have a mortgage, so don't think entitled to any help eith that????

Any help much appreciated.

ang3

Sorry 12/13 income does not include the pension payment, so would be extra £7008.00

ang3

Sorry yes pension was approx 9000 before tax. Childcare started Jan this year.

Thanks

ang3

Thanks for that. Dont think i will get anything though with getting extra £7000 last year, and not advising them, when i gave them last years figures.

Think will have to go to citizens advice to see what i am best doing. Stopping work, or maybe going full time and putting daughter in full time nursery.

ang3

Does it make a difference that i do not have the pension money at all.

It all got spent on bills and paying people back last year. I can prove that with my bank statements.....or does that not matter? it is still classed as an income?

Thanks

McKneff

Im puzzled as how you could cash in a pension, you cant normally do that until you are 55 years of age ????