tax credits and savings

quintwins

so after a very disappointing visit to see about a loan for a plot of land we have decided to save and try to buy one out right, we have cut all our expenses way back and are getting on very well

but now i'm wondering how thsi will effect my tax credits, i'm married with 3 kids my hubby works gull time and i'm a sahm

now we've never really had any saving to talk about, just enought to get us by if something breaks, now it looks like we will have about £3,000 when we renew, first off i'm wondering if they will decied we don't need there money anymore and cut our benefits as we;ve managed to save this much, 2nd will this effect our benefits at all?

we only get working and child tax credits and child benefit

also next year we plan to save another £8000, so will have £11,000 what happens then?

i just don't wanna scrimp and save not to be any better off

[Deleted User]

if i remember correctly the only thing they will count is anything over £300 in interest on your savings,and with interest rates so low your £3000 cant be earning more than £75 a year

karenx

Having over £6000 in savings will effect housing benefit and council tax benefit if you recieve either of those

quintwins

i don't recieve either of those, as my hubbys incomes to high

i have another question we owe them £2,400 which we are paying back (not our fault but i can't prove that ) if we renew will they stop our payments until it's paid off or demand a lump sum, i don't mind if they do either of these really as atleast thats it paid off but again i don't want a nasty shock

karenx

You can either pay it all off or they will reduce your tax credits award to repay some of it. Iv never had an overpayment so Im unsure how it works, but once you get your new award letter it will have on it how much they are taking back weekly or monthly. Im sure you could call and ask them to reduce it slightly if you think its too high. But if I was you I would rather it be higher as it means its paid off quicker and 1 less thing to worry about!

quintwins

at the moment we're paying back something silly like £5 a week, when i worked it out it would take nearky 5 years to pay off, i was thinking of phoning and paying it all at once because i don't wanna owe them money when we stop getting tax credits (hopefully that won't be 2 far away)

karenx

Yes it would be great to be able to not rely on them wouldnt it!

quintwins

wouldn't it just once my boys go top school it should be possible for us