working tax credits and non taxable income

needtostopspending_2

need some advice please I claim working tax credits on the income that is taxable I didnt tell them about the income i get that is non taxable as it seems i don't have to!!is this right, do i only need to tell them about the income that is taxable as the lady on the phone told me that she only needs to know about the income that is taxable?

does this make sence!?

zagfles

Generally yes, but there are some exceptions. What's the non taxable income?

ets99

i'm kind of in a similar position, I'm claiming child tax credits and i receive rental income which after all of the outgoings, eg mortgage, running costs are paid out, i'm left with a substantial minus figure leaving on tax to pay. do i need to declare this as i was only asked to tell them about taxable income? you advice would be appreciated. thanks Ella.

allen35

Click on the link for allowable expenses:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_10014027

It seems you can add interest on the mortgage only as an expense and running costs relating to the property.

needtostopspending_2

we are respite cares/family link we don't pay tax on any money we receive.

needtostopspending_2

can anyone help!!also I opened a bank account for my dad to use, he has put £16,000 in it he has just retired,he tells me he cant open a bank account and was told not to keep it in his house,will this affect me in anyway?

zagfles

needtostopspending wrote: »

we are respite cares/family link we don't pay tax on any money we receive.

Well it says foster care payments are disregarded. If it's non taxable it's almost certainly not counted, you might want to confirm it on the phone then it's their fault if they give you the wrong advice

zagfles

needtostopspending wrote: »

can anyone help!!also I opened a bank account for my dad to use, he has put £16,000 in it he has just retired,he tells me he cant open a bank account and was told not to keep it in his house,will this affect me in anyway?

If you earn over £300 interest you need to declare it. Capital doesn't make any difference to tax credits but the interest over £300 does.

It will make a difference to benefits eg housing benefit/council tax.

allen35

needtostopspending wrote: »

can anyone help!!also I opened a bank account for my dad to use, he has put £16,000 in it he has just retired,he tells me he cant open a bank account and was told not to keep it in his house,will this affect me in anyway?

No it shouldn't affect you as you are working but if you receive housing benefit/council tax benefit and you have £16,000 savings then yes if you cannot prove it's your dad's.

Although you have to declare savings interest over £300 for tax credits so this may become a problem next year.

Does your dad receive benefits such as pension credit/housing and council tax benefit the he has a responsibility to inform the relevant department that he has savings over £10,000.

How does he receive his pension if he has no bank account, can he not open a basic bank account it would reduce the need for you explaining why it's in your account.

needtostopspending_2

allen35 wrote: »

No it shouldn't affect you as you are working but if you receive housing benefit/council tax benefit and you have £16,000 savings then yes if you cannot prove it's your dad's.

Although you have to declare savings interest over £300 for tax credits so this may become a problem next year.

Does your dad receive benefits such as pension credit/housing and council tax benefit the he has a responsibility to inform the relevant department that he has savings over £10,000.

How does he receive his pension if he has no bank account, can he not open a basic bank account it would reduce the need for you explaining why it's in your account.

Thanks for all the help,I am going to ring the old man up and ask him as I never looked at it that way,he could put his savings in my bank and then never tell the relevant department that he has any savings!!DONT LIKE THE SOUND OF IT!.thanks for the advice