Pension lump sum whilst on UC.

Tpunu

I will be recieving a lump sum of around 21K I know this will take me over the 16K threshold but 10K will be used immediately to pay debt and the vast majority of the rest will be used for a second hand car my current 23 year old car that I have had for a very long time is no longer fit for purpose the children are much bigger now.I have seen that as long as my account is below either thresholds before the assesment period is over I will be ok clearly any other advice will be helpful all receipts and bank statements will be kept.

Brie

Are you sure about the amount you will get?  Pensions are taxable so it's possible you'll get less.   When I got a lump sum from my pension I was taxed as if I would be getting the same amount every month.  So at the higher tax limit of 40%.  I got the excess tax back but it might solve your problem with too much saving at one time.  

And why are you getting this lump sum?  Are you simply accessing this as you've hit an age where are allowed to have it and aren't bothered about not having it later in life?  

Robbie64

Keeping receipts is the important one. Maybe keep a spreadsheet with your income and outgoings for the month.