Need some help please

homemaker12

Hi there all.
I am a newbie. I am a full time mum to 6 children. The child benefit which I receive is hardly ever touched. I was wondering about putting it into an ISA account but dont understand the whole thing of 'use it or loose it' that I keep reading about. what does that mean?
My other question is ...when it comes to filling in the tax forms (of any kind) is child benefit money supposed to be put down as savings?
thanks for reading
Homemaker12

jem16

homemaker12 wrote:

Hi there all.
I am a newbie. I am a full time mum to 6 children. The child benefit which I receive is hardly ever touched. I was wondering about putting it into an ISA account but dont understand the whole thing of 'use it or loose it' that I keep reading about. what does that mean?

Each year you have an alowance that you can save in an ISA - for example £3,000 into a Cash ISA. After 5 years of putting in your allowance each year you could have saved £15,000 plus tax free interest. However you could not wait until year 5 and put the whole £15,000 in at once. If you don't save your allowance that tax year, you don't get the chance later.

My other question is ...when it comes to filling in the tax forms (of any kind) is child benefit money supposed to be put down as savings?

Yes it would be classed as savings.