What is classed as income?

Supermom

Please help, I'm trying to help my sister fill in her renewal (this is her first one) a bit of background her hubby left her with a large mortgage lots of debts and no money with 3 kids. She works school hours and has been claiming wftc since he left but is now finding things increasingly difficult my parents are comfortable and want to help by giving her money each month to pay the mortgage but would she need to declare this as income on her renewal?

Thanks

iamana1ias

Yes. Unless she wants to commit fraud.

karenx

Yes if its a regular payment to her. Which might find it takes her over the limit for WTC also and she will no longer qualify and/or have an overpayment from the past year

sox8369

I think she should get some legal advice asap and make sure she is getting everything she is entitled to from the ex - take an income and expenditure breakdown with you.

Most solicitors will do a free half hour consultation - but you need to protect her and the kids by getting advice - and ensure the ex is paying his obligations correctly. Good luck x x

Supermom

Could someone tell me where this would be covered in the renewal pack/hmrc website please

Thanks

Amistoso_2

as far as I'm aware cash gifts do not have to be declared to tax credits as they are not taxable, only if it was a large inheritance etc would it have to be declared

it's the same with maintenence payments, thay are also not taken into account...

Supermom

sox8369 wrote: »

I think she should get some legal advice asap and make sure she is getting everything she is entitled to from the ex - take an income and expenditure breakdown with you.

Most solicitors will do a free half hour consultation - but you need to protect her and the kids by getting advice - and ensure the ex is paying his obligations correctly. Good luck x x

He is a bit of a waste of space shall we say and she is currently trying to sort things out via the CSA, not holding our breath,

I can't see anywhere on the tax credits info that you have to delcare gift payments which in effect they would be gifting her the money, I'm not saying its not true but if they can't help her with the mortgage she will lose her home and I just don't want her to go through that on top of everything else she has been through. She works hard and is a fantastic mum and more than anything she wants to keep the kids as settled as possible.

My sister would never dream of commiting fraud which is why we asked the question on here. All we would like is to see where this is stated on either the website or paperwork. Please could someone point us in the right direction

Thanks

Supermom

Amistoso wrote: »

as far as I'm aware cash gifts do not have to be declared to tax credits as they are not taxable, only if it was a large inheritance etc would it have to be declared

Now I'm even more confused, and sister is in tears

Help

afc80

i know that for housing benefit, regular/weekly/monthly money from parents is classed as voluntary payments and disregarded in full when calculating entitlement to Housing Benefit.

Maybe the rules are the same for tax credits?

Amistoso_2

Supermom wrote: »

Now I'm even more confused, and sister is in tears

Help

it's definately not counted as income, so please don't worry!!!

iamana1ias

Sooner these stupid tax credits get scrapped the better. They're an absolute farce.