Quick question, tax credits and cash gifts?

Supermom

Just a really quick question, I'm not sure if I should post it here so sorry if this is in the wrong place!

My parents want to give me a regular cash gift but I don't know if I have to declare this on my tax credits renewal can anyone advise???

Thanks

banana

Qiuck answer -yes declare all income. Anything paid to you is income

OrkneyStar

I'd say if it is a regular dependable thing then yes it should be declared.
My my mum gives DS pocket money every so often (small amounts and not on a set time basis or anything) and we would not declare something like that.
Perhaps if it is an issue could your parents actually get you things instead of money ? Shopping, clothing, pay a bill etc ?
Finally, you are lucky your parents are doing this for you so appreciate them .

TotallyBroke

I agree with OrkneyStar ask them to buy things for you. It could be the Tesco shopping saving stamps or Tv licence stamps or put credit on your utility meters for you.
Or they could regulary top up a children's clothing gift card there are many other ways they can help you out instead of giving you an income which is what cash would be.

alwaysonthego_2

If it is regualr payments then it is an income. You should declare any income over £300 to TCO.

Supermom

Thanks to everyone!

So for example if they were to put it on to say a Tesco pre-paid card each month would that be ok ? or would it still be declared (i don't want to get into trouble)

alwaysonthego_2

Supermom wrote: »

Thanks to everyone!

So for example if they were to put it on to say a Tesco pre-paid card each month would that be ok ? or would it still be declared (i don't want to get into trouble)

What ever form they are giving you it in is still income.

TotallyBroke

This is from the entitledto website.

"The first £300 of income from these sources is ignored when tax credits are calculated.

If your 'other income' is less than £300 a year you should not enter anything. If your 'other income' equals more than £300 a year, deduct £300 from the total sum and enter the total less £300. If you have a partner you will make a joint claim, and there is only one £300 allowance for both of you.

Include:
income from property and shares (unless rented out under the Share-a-Room scheme)
income from occupational and other private pensions
income from the state Retirement Pension (including the basic state pension, State Earnings-Related Pensions (SERPS) and Graduated pension/retirement benefit, but excluding the Christmas Bonus and Winter Fuel payment)
interest and dividends on savings and investments (except tax-exempt savings plans such as ISAs, PEPs and non-taxable National Savings products)
foreign income (including overseas pensions and social security benefits)
any shares purchased from an employer under a Share Incentive Plan
Dependant’s Grant paid to students with a spouse or unmarried partner or dependant adult

Exclude:
Income from Individual Savings Account or a Personal Equity Plan (including interest, dividends or other gains on such plans)
Income from child maintenance payments
Student loans and grants made to cover the cost of tuition fees, childcare and the Parent’s Learning Allowance
bursaries paid under the NHS Bursary Scheme
children's income"

So based on this, if your parents bought you food or other gifts I see no reason why you would need to declare it. It is not an income. But to be on the safe side just ask them to keep it under the £300 mark per year.

alwaysonthego_2

TotallyBroke wrote: »

This is from the entitledto website.


So based on this, if your parents bought you food or other gifts I see no reason why you would need to declare it. It is not an income. But to be on the safe side just ask them to keep it under the £300 mark per year.

but they should physically buy her the goods rather than topping up a pre-paid card with cash.

olias

To the OP,

I would be very careful about accepting advice on a forum as correct. I have just had a brief look at both the tax credits and HMRC websites and NOWHERE does it state cash gifts are counted as income either for tax or tax credits purposes. You need to contact your local tax office and get a definitive answer IN WRITING from them. For the record I do not believe they do count as income.

Olias

[Deleted User]

Cash gifts are treated as capital (in the same way as winning pools/bingo lottery).

TCO are not interested in the capital in this case but if you earn interest on the money when it is in the bank you may need to declare it.

Interest comes under the "other income" heading and any other income above £300 must be declared.

Other benefits may have other rules so make sure you get advice if you receie any other benefits.

You dont need this in writing, if you are still unsure you have the guidance notes that come with your claim form and/or renwal and you can also phone the helpline. All calls are recorded and you should take a note of the date, time and name of the adviser you spoke to