Working Tax Credit and Endowment

glicky

I've been on working tax credit for a couple of years because my salary is pretty low. I'm a hairdresser and not as busy as I used to be, therefore my average salary is approx £5K.

I was paying an Endowment over the years and it has just finished and I've received a cheque for £39,000.

Do I have to let the Working Tax Credit people know I have received this? It's not as if my salary is going to go up and I will be getting more money in the long run. This Endowment money will make things a little easier.

Any ideas of what I should do please?

leveller2911

No, Tax credits are not based on savings they are based on income ....... Endowments are not treated as income, neither are ISA,s or any savings.

Good on you for saving........Treat yourself and save some..:D

EDIT: Are you married?...........:rotfl: need a hubby?.

glicky

leveller2911 wrote: »

No, Tax credits are not based on savings they are based on income ....... Endowments are not treated as income, neither are ISA,s or any savings.

Good on you for saving........Treat yourself and save some..:D

EDIT: Are you married?...........:rotfl: need a hubby?.

I didn't realise it was based on income. I thought it was about how much money one has. With the interest rate as it is at the moment, I'm not earning much on £39,000, so hopefully that won't affect anything.

:rotfl:

I only need a hubby if they are richer than me

Are you?

leveller2911

No, just a poor Carpenter & Joiner........

Out of interest how much were you paying in and for how long?. Endowments don't seem to be a good investment anymore.

glicky

leveller2911 wrote: »

No, just a poor Carpenter & Joiner........

Out of interest how much were you paying in and for how long?. Endowments don't seem to be a good investment anymore.

You must be loaded - they charge a fortune

It wasn't a good investment.

I was paying in for 25 years (£79 per month) and it was supposed to cover my £65,000 mortgage (which obviously it didn't). I sold the property about 15 years ago (didn't make any profit on it) and continued paying the endowment. So really, I've come out at a loss :mad:

leveller2911

glicky wrote: »

You must be loaded - they charge a fortune

Large overheads too but yes I make a living.:D

It wasn't a good investment.





I was paying in for 25 years (£79 per month) and it was supposed to cover my
£65,000 mortgage (which obviously it didn't). I sold the property about 15
years ago (didn't make any profit on it) and continued paying the endowment. So
really, I've come out at a loss :mad:

Think your the rule rather than the exception.I know so many people who's endowments underperformed. I'm paying into an endowment for my son, £25 per month for 18 years , 3 years to go but I'm not holding my breathe.

Still,you have a decent sum to invest somewhere......Good luck to you Glicky.

PS:Remember if you do invest some, any interest will be seen as income for WTC but there may be some allowances. If interest rates went up it may be an issue in the future.

glicky

leveller2911 wrote: »

Think your the rule rather than the exception.I know so many people who's endowments underperformed. I'm paying into an endowment for my son, £25 per month for 18 years , 3 years to go but I'm not holding my breathe.

Still,you have a decent sum to invest somewhere......Good luck to you Glicky.

PS:Remember if you do invest some, any interest will be seen as income for WTC but there may be some allowances. If interest rates went up it may be an issue in the future.

Thanks leveller.

Nice talking to you :beer: