Child Tax Credits - help!

MissQ73

Hi,

I am a single parent, working FT and currently receive Child Tax Credit. My Father wanted to put some money aside each month so he has a standing order to my bank & I opened up an Investors Investment ISA, which the amount goes directly in to from me.

What I need to know is do I have to declare the amount paid to me by my Father and the ISA to the child Tax Credit people? If so will this affect the amount I receive from them? I am not trying to flout the law but trying to find a way to save this small amount for my son's future without being penalised in the immediate.

Would I be better off opening a child's savings account instead? Where would the money be better off?

Any help/advice would be gratefully received.

Many thanks in advance.

MissQ73

mum2one

I don't know re tax credits side etc, but what I have done, as my parents put a small amount up every month for my daughter, we opened a childs account, but with them as the trustee, - yes its dds money, but avoiding my bank account etc, keeps it as her money.
Sorry couldn't help any further xx

AnxiousMum

The easiest way is to set up a child's account and have your father as the trustee. You would only have to declare the interest if over £300 in a year, but as it's an ISA,that wouldn't be a problem! Where you might come into a problem down the road, is if the account is in your name, and the worst should happen and you get made redundant or something in your job - because your name is on the account, the benefits people and housing etc. would see that you have this money available to you - so would be counted as capital. If it's not in your name, you don't have access to the money, then this is not an issue IF you ever needed to rely on benefits for any reason.

MissQ73

Thanks for the advice...you've given me something to think about.

But...... if anyone out there knows anything more specific to my circumstances please feel free to explain..

Many thanks again.

MissyQ73

Murgatroyd21

The money paid to you by your father isn't taxable income for tax credit purposes. Neither are ISA's. No need to declare them.