Working tax credit and Private Pension

oaktree_7

Hi , as I approach my 55th birthday, my private pension I have with the prudential is available, I’m considering taking 25% of this approx 5000.
I’m self employed and I’m on working tax credits to help with my wage. 

I’d like to get some advice, if I take the 25% of the Prudential Pension, do I inform the HMRC of this and if so, will this alter my tax credit? I currently have savings of £3000 , I don’t want to fall foul of the laws, but I’d like to take the 25% to help with some expenses I have.
many thanks

Alice_Holt

It's the interest (over £300) that you receive on your savings that affect TC, not the amount of savings / capital you have.

If you google Tax Credits and Savings you can find out more. 

sheramber

if you are taking the tax free element of your pension payment you do not include it for tax credits.

oaktree_7

That’s what I’m going to do , so I don’t have to inform HMRC. Many thanks