some advice please

blenoir

If anyone can advise I'd be very grateful

I receive working family tax credits which get renewed every April
My father is getting on and to save a lot of bother with probate he wants to transfer a considerable sum of money to my bank account soon
If this is done, naturally I would expect my tax credits to stop altogether as I would then be in a better financial position. This I am ok with.
Someone has suggested that not only would my tax credits stop but I would be liable to repay all the credits I have received since last April since although receiving the money a bit before April 2010 I would be considered to have been overpaid as though I'd received the money in Apr 09
Is this true? or have we got it all wrong?

dmg24

I think you've got it all a bit confused!

Tax Credits do not take into account savings, only interest on savings over £300, which will need to be declared along with your usual income.

Oldernotwiser

dmg24 wrote: »

Tax Credits do not take into account savings, only interest on savings over £300, which will need to be declared along with your usual income.

Just to clarify - isn't that the interest over £300 rather than the savings themselves being over £300?

healy

Oldernotwiser wrote: »

Just to clarify - isn't that the interest over £300 rather than the savings themselves being over £300?

Yes over £300 in interest.

blenoir

dmg24 wrote: »

I think you've got it all a bit confused!

Tax Credits do not take into account savings, only interest on savings over £300, which will need to be declared along with your usual income.

Is that sure?
Obviously with a tidy sum of money in my account I wont need tax credit or any other kind of benefits
So what happens when I get this money and tell them to stop paying me as I dont need it anymore? Is that it?

Kimitatsu

Yes in a nutshell - thats all you need to do.

You can still claim tax credits for the remainder of this year if you will ean less than £300 in interest , as it goes on last years income and this years family situation. When you renew though in April your tax credits may stop (only may because it depends on how much interest you earn, if you have the money in a 0% interest account it takes no account of capital)