Tax credits and savings

strawb_shortcake

I am about to come into a large(ish) sum of money and want to check that this doesn't affect my tax credits. It's my understanding that I only need to let them know about interest over £300 per annum?
We were planning to set aside some money to overpay the mortgage for the next 3 years, we'd then planned to put some into premium bonds and some into fixed rate bonds or an ISA. Some of what I've read it sounds like tax free savings may be exempt is this correct?
I've never had or thought I'd have this kind of money so lacking somewhat in my knowledge.

TIA

calcotti

annabanana82 wrote: »

I am about to come into a large(ish) sum of money and want to check that this doesn't affect my tax credits. It's my understanding that I only need to let them know about interest over £300 per annum?

That's correct.

annabanana82 wrote: »

Some of what I've read it sounds like tax free savings may be exempt is this correct?

I believe that's correct, only amounts over £300 of taxable interest have to be declared.
https://www.entitledto.co.uk/help/tax-credits-other-income

strawb_shortcake

excellent thank you, I expect I only have a year left before I'm earning too much for tax credits anyway but I'd rather not end with a debt to pay.