UC denied due to savings for upcoming tax bill. Advice?

Kim_13

mindthegap76 said:

The advice I was given at the time was not to pay and invest the money to one side, hence the ISA and PB. If I remove the money from the ISA before January I will lose all interest. 

What is the exact ISA the savings are in? A 1 year fixed presumably, for which the penalty to break is usually only 60-90 days interest, not all of it. That should cost you less than not getting the tax bill gone now and losing entitlement to UC. If the terms of the product allow, you could take the penalty on only the amount required to get your total funds below £6k for a full UC claim. 

In future I would only use PBs for tax savings - with £30k in there you could have got this sorted now with no penalties payable. They are tax free in the same way as an ISA and £30k in rather than £10k would have improved your odds of matching or beating the average return.