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tax credits -we owe money - advise please
gele
Posts: 313 Forumite
Some clarification please.
Although we are low earners,we have had our 'award' and will not receive anything this year and need to pay back some. This is because I received approx. £8000 from an ex employer who wound up a pension scheme. I hadn't thought about this affecting tax credits but on reflection, its bound to I guess. I had planned to reinvest this £8000 in another pension, but it looks like now we may need it for day to day living.
This has also made me think about the near future and this is where my question lies. In Feb 2015 we will have finally have paid off our mortgage [hurray]. Because we had an interest only mortgage with an endowment [and a shortfall] we put some on repayment and have scrimped and saved elsewhere to overpay. The result is our shortfall should now be a credit of [strangely] £8000. When we get this I expect it will be classed as other income and affect tax credits again. Can anyone confirm this? Again I had plans for this money [invest for daughter - uni etc - shes almost 10] but may not be able to as we may need it for bills etc
Although we are low earners,we have had our 'award' and will not receive anything this year and need to pay back some. This is because I received approx. £8000 from an ex employer who wound up a pension scheme. I hadn't thought about this affecting tax credits but on reflection, its bound to I guess. I had planned to reinvest this £8000 in another pension, but it looks like now we may need it for day to day living.
This has also made me think about the near future and this is where my question lies. In Feb 2015 we will have finally have paid off our mortgage [hurray]. Because we had an interest only mortgage with an endowment [and a shortfall] we put some on repayment and have scrimped and saved elsewhere to overpay. The result is our shortfall should now be a credit of [strangely] £8000. When we get this I expect it will be classed as other income and affect tax credits again. Can anyone confirm this? Again I had plans for this money [invest for daughter - uni etc - shes almost 10] but may not be able to as we may need it for bills etc
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