Declare loan?

lita

Hi, quick question - if I was to get a loan would I have to declare it to the tax credit people as savings or anything?

Thanks

alwaysonthego_2

No you don't, only if you decide to save it and earn over £300 interest.

lita

What if, for example, I get a £15k loan to use as 'wages' (not going back to work after maternity leave so only income is child benefit and tax credits)?

Thank you

p00hsticks

lita wrote: »

What if, for example, I get a £15k loan to use as 'wages' (not going back to work after maternity leave so only income is child benefit and tax credits)?

Thank you

not answering your question, I know, but how on earth are you going to pay back a £15k loan when you only have child benefits and tax credits coming in ?

lita

I'm just looking at possibilities, trying to make money and life a little easier.

mitchaa

lita wrote: »

I'm just looking at possibilities, trying to make money and life a little easier.

This appears to me that you are going to rack up debt to live off of with virtually no way to pay it back.

Are you going to go bankrupt after the £15k is spent to wipe the slate clean? You do know you can be jailed for this as it is blatant fraud.

If you can't manage off of your income just now, how on earth are you going to manage off the same income this time next year when the £15k is spent and you have to pay £300pm or so back in loan repayments?

Please don't be so bloody stupid. It wouldn't be hard to prove this is your intention.

Im flabbergasted at the thought of people doing this:eek:

sunnyone

lita wrote: »

What if, for example, I get a £15k loan to use as 'wages' (not going back to work after maternity leave so only income is child benefit and tax credits)?

Thank you

Have a look a the bancrupcy board;)

mitchaa

Oh and how are you going to live when you've been declared bankrupt, no other lender will lend you a penny to do this again and the OR controls all your income?

£15k may be a quick fix now but its not solving the underlying problem that you are living way beyond your means.

Deepmistrust

lita wrote: »

What if, for example, I get a £15k loan to use as 'wages' (not going back to work after maternity leave so only income is child benefit and tax credits)?

Thank you

Wages are subject to income tax. You will never be able to declare a loan as "wages". You have to actually work a set number of hours too, in order to qualify for WTC.

Why don't you consider going back to work, even for only 16 hours, you'll be much better off, and won't have to pay back your salary with interest to the bank;)

lita

mitchaa wrote: »

This appears to me that you are going to rack up debt to live off of with virtually no way to pay it back.

Are you going to go bankrupt after the £15k is spent to wipe the slate clean? You do know you can be jailed for this as it is blatant fraud.

If you can't manage off of your income just now, how on earth are you going to manage off the same income this time next year when the £15k is spent and you have to pay £300pm or so back in loan repayments?

Please don't be so bloody stupid. It wouldn't be hard to prove this is your intention.

Im flabbergasted at the thought of people doing this:eek:

I just wanted to find out if I would be able to get a loan for the next year and then when my son goes to nursery I would get a job. If you are implying that I was going to spend the money and then declare myself bankrupt so I didn't have to pay it back then you are very much mistaken! Don't tar us all with same brush please:mad:

Wow! Such a simple question and I get accused of being fraudulent!

lita

Deepmistrust wrote: »

Wages are subject to income tax. You will never be able to declare a loan as "wages". You have to actually work a set number of hours too, in order to qualify for WTC.

Why don't you consider going back to work, even for only 16 hours, you'll be much better off, and won't have to pay back your salary with interest to the bank;)

I didn't mean that I would declare it as wages, I just meant that if that money was sat in my account and me using some on a monthly basis would I have to declare it and before anyone says anything - if I needed to then I would but am just unsure if I would need to.

I have tried finding work but can't find childcare that I am happy with unfortunately.
I am not comfortable leaving my 7 month old in a nursery or with random strangers ie childminders at his age so that's out but to work I would need childcare as my partner works random shifts so it is also difficult for me to work around him because not many jobs are as flexible as I would need.

Thank you for your reply