Child's Post Office account - are these safe from CSA new Bank arrestment laws?

Kimitatsu

CornishBloke29 wrote: »

How can the CSA infer money held for a child is income? its already been UK taxed and levied for child support. Surely income is not taxed and levied twice?

The reason is that if that money produces interest then it can be used for child support. Whilst I realise that you have stated that it is only a small amount of money you can invest money tax free in a childs account as long as it does not produce interest income above the single persons tax allowance (I am sure you knew that if you have worked in the banking system anyway!) For some NRP's (and given todays pathetic interest levels) that would mean that a substantial sum could be put away earning interest that the child would never see. That is why the remit covers all bank accounts, it is only if the money was placed in trust that the money could legitimately be said to be for the child.

Your subsequent posts though have highlighted further issues - if the children live wth you why are you paying maintenance? Are you in receipt of CB for the children? Surely you should be claiming maintenace from the NRP?

CornishBloke29

plok wrote: »

If you put money into an account here or elsewhere for the benefit of your child you will be penalised by the CSA.

What legislation is this?

I cant see any sensible government passing laws that encorage working parents offshoring their childrens savings.

CornishBloke29

Kimitatsu wrote: »

you can invest money tax free in a childs account as long as it does not produce interest income above the single persons tax allowance

My children are non taxpayers... that is quoted from ther NS&I application form from the post office.

CornishBloke29

Kimitatsu wrote: »

Are you in receipt of CB for the children? Surely you should be claiming maintenace from the NRP?

I am now, but she was originally claiming it while I had the children but she cant explain where the money went.

I cannot claim maintenance from my ex because she is neither working nor signing on. I dont even know where she lives.

Kimitatsu

CornishBloke29 wrote: »

I am now, but she was originally claiming it while I had the children but she cant explain where the money went.

But that bit is irrelevant - if she had the money and she was not entitled to it then she needs to pay it back and it should be paid to you. CB does not automatically mean that she is entitled to CM, there are a few threads over on the benefits board re CB and CTC (you CAN claim one without the other) so your precedent is already set, for proving that the children lived with you and she was not entitled to CM.

I cannot claim maintenance from my ex because she is neither working nor signing on. I dont even know where she lives.

Again that is down to enforcement, they have the ability to track her through NI contributions etc, after all if you dont know where she lives she could be working and you coul dbe entitled to CM.

Regarding the interest issue, your children are non taxpayers because they earn less in interest than the single persons tax allowance every year. If for example they earnt £10k in interest every year from a capital amount then that would be liable to the basic rate of tax. The form you sign for non payment of tax declares that the person who benefits from the account will not earn enough to take them over that threshold.

bdt1

Cornish Bloke be interested in result, as my child is due to receive some money, and as a NRPP I'm fearful that wherever we put my sons money, my hubs ex (PWC) is so vindictive, had Criminal Compliance involved twice in hubs case, that she'll want her claws on it, or at least be seen as assessable income.

All I want is for my sons money to be put away and protected until he is old enough and responsible enough to use it wisely (deposit on 1st property or similar). Yet, I have no trust in the morals or our PWC or the CSA

LizzieS_2

Childrens accounts only affect csa1 - the interest element, not the capital afaik (Kelloggs will know more).

There is no effect on csa2, unless the money has come from an outside source and is being directed to a childs account when really it is the parents income - proof would be required.

If arrears are outstanding, the csa could possibly take a dim view if you cannot pay much off the arrears but ar putting away say £20pw into a childs account - that would only affect the amount of arrears you are assessed to pay monthly etc (not normal payments).

Kimitatsu

bdt1 wrote: »

Cornish Bloke be interested in result, as my child is due to receive some money, and as a NRPP I'm fearful that wherever we put my sons money, my hubs ex (PWC) is so vindictive, had Criminal Compliance involved twice in hubs case, that she'll want her claws on it, or at least be seen as assessable income.

All I want is for my sons money to be put away and protected until he is old enough and responsible enough to use it wisely (deposit on 1st property or similar). Yet, I have no trust in the morals or our PWC or the CSA

But if it has been left to him then the will is a legal document which put the money in his name. Put it in trust until he has finished full time education and she would have no recourse to touch it

bdt1

Cornish Bloke, you can appeal out of time in exceptional circumstances - we did this successfully, and are awaiting Tribunal hearing date

CornishBloke29

LizzieS wrote: »

If arrears are outstanding, the csa could possibly take a dim view if you cannot pay much off the arrears but ar putting away say £20pw into a childs account - that would only affect the amount of arrears you are assessed to pay monthly etc (not normal payments).

Off topic, too many assumptions, the child in question is nothing to do with the CSA or any assessment. My assessment is in dispute and there is no legal avenue to resolve. Not a discussuion for today.

On topic, I just need to know if investimg money in a post office account in the childs name is safe. yes/no.