Redundancy and tax credits

amye

I am a single parent currently claiming tax credits for my 2 children who go to nursery. I will be made redundant at some point in the next 2 years from a large corporation after 12 years service.


I believe it will be around 45K. I understand that the first 30K is tax free but does this count towards my income for tax credits?


In a nutshell, should I put all my tax credit money to one side incase I have to pay this back.


Thanks
Amy

Kynthia

This link seems to suggest only taxable income is relevant for tax credits. Therefore the initial £30k, as long as it's redundancy and not pay in lieu of notice, does not effect your tax credits. Probably worth checking further though.

http://taxaid.org.uk/guides/information/issues-for-employees/employee/redundancy