Tax credit enquiry

N4D5 · 13 December 2017 at 3:17PM

Hi guys, just wanted a bit of advise, have been selected for a tax credit enquiry. Not sure what has triggered but ill try sending them what i can.

I wanted to ask something and clear it up before i responded back to them.

Last year I remortgaged my property and took out extra cash to do home renovations and to buy a new car. To date due to new baby arriving we haven't been able to do this and £40k is sitting in a CURRENT account, non savings account.

I think the mortgage was taken out in April 2016.

My question is does this need to be disclosed to the tax credit people. Would money that i have taken out on a mortgage make a difference to them. We only receive £90 child tax credit a month due to household income.

If it does effect the tax credit claim i don't mind repaying the amount but wanted to make sure before i went back to them as i have been asked to provide bank statements.

Thanks in advance as always.
Nad

Darksparkle · 13 December 2017 at 3:18PM

Savings don’t affect tax credits.

Dazed_and_confused · 13 December 2017 at 10:52PM

£40k is sitting in a CURRENT account, non savings account

Capital might not be relevant for tax credits purposes but interest is and in recent times current accounts have often been the highest paying accounts.

Did you declare any savings interest you received on your renewal?

N4D5 · 15 December 2017 at 10:33AM

I use to have savings accounts many years ago which paid pennies. However after speaking to the bank and a personal decision I closed all my interest earning accounts and on the advise of the bank opened non interest bearing current accounts. So i don't receive any interest at all across any of my current accounts.

I was speaking to an accountant I bumped in to yesterday who mentioned that anything over £6k or £8k should have been declared and that i could be penalised for not declaring this money. Is this true?

I'm getting mixed messages so not sure where I stand. I did not declare this money to them as it was my cash from mortgage as advised above for house refurbs and car and as I have never had a single penny interest on it and I didn't think I needed to declare it.

Darksparkle · 15 December 2017 at 10:37AM

N4D5 wrote: »

I use to have savings accounts many years ago which paid pennies. However after speaking to the bank and a personal decision I closed all my interest earning accounts and on the advise of the bank opened non interest bearing current accounts. So i don't receive any interest at all across any of my current accounts.

I was speaking to an accountant I bumped in to yesterday who mentioned that anything over £6k or £8k should have been declared and that i could be penalised for not declaring this money. Is this true?

I'm getting mixed messages so not sure where I stand. I did not declare this money to them as it was my cash from mortgage as advised above for house refurbs and car and as I have never had a single penny interest on it and I didn't think I needed to declare it.

Call them yourself if you are concerned that the answers you have been given here are incorrect.

Savings affect other benefits eg universal credits, not tax credits.

N4D5 · 15 December 2017 at 10:52AM

Darksparkle wrote: »

Call them yourself if you are concerned that the answers you have been given here are incorrect.

Savings affect other benefits eg universal credits, not tax credits.

Thanks Dark, I have never really questioned the information that i have received here and I'm really great full for the time people take to respond. Having done a further search he may have been referring to universal credits as I believe there maybe limits for that.

The bank statements they have asked for cover 3 months between Jan 17 and Apr 17. Which show no interest on the account, will this be enough for them to see or will they require further evidence.

Thanks

Kayalana99 · 15 December 2017 at 1:10PM

I was going to say I'm sure if you have over 6k in the bank (current or savings) it needs to be declared, and then it reduces your tax credits up to 15k, at which point you wouldn't be entitled to anything.

Darksparkle · 15 December 2017 at 1:22PM

Kayalana99 wrote: »

I was going to say I'm sure if you have over 6k in the bank (current or savings) it needs to be declared, and then it reduces your tax credits up to 15k, at which point you wouldn't be entitled to anything.

That doesn’t apply to tax credits.

Darksparkle · 15 December 2017 at 1:23PM

N4D5 wrote: »

Thanks Dark, I have never really questioned the information that i have received here and I'm really great full for the time people take to respond. Having done a further search he may have been referring to universal credits as I believe there maybe limits for that.

The bank statements they have asked for cover 3 months between Jan 17 and Apr 17. Which show no interest on the account, will this be enough for them to see or will they require further evidence.

Thanks

It would really depend what they are looking into. It could simply be a random check. Provide what they ask for, they’ll let you know if they need more.

Dazed_and_confused · 15 December 2017 at 4:31PM

I use to have savings accounts many years ago which paid pennies. However after speaking to the bank and a personal decision I closed all my interest earning accounts and on the advise of the bank opened non interest bearing current accounts. So i don't receive any interest at all across any of my current accounts

That has to be one of the most surprising posts I've ever seen on an MSE forum!

If you'd posted it on the savings and investments board regular posters would be breaking into a sweat worrying about the income you're giving up!!

Tax credit enquiry

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