Tax credits, interest - desperate for help!

NozzaC

Hi

We're about to sell our house and rent. This will give us about £140000 cash. The plan is to put it in a savings account and use the monthly interest to go towards the rent.
My wife works part-time and I work full-time. We have two kids and we pay about £1000 childcare a month. But we rely on WTC and CTC to square the circle every month and the interest on the cash reduces our credits by about £2K.

I'm desperately searching for answers - Is there any way around this?

Do they take the gross interest (before the 20% is deducted by the bank) as the relevant figure?

Are there investment vehicles where the capital would accumulate but not be paid out (and thus be taken as earnings)for say a year or so (when earnings and outgoings would be better)?

Is it possible to loan the money to a limited company as a directors loan and have that ltd co invest the money and not pay dividends for a year?

Do ISAs, kids bank accounts, premium bonds, offshore what-have-yous or anything else help this?

Thanks

Fran

***Boardguide comment***

Hi,

This board is not intended for finding "ways round" (potentially fraudulent) claims.