Should I pay tax on regular money from parents?

zolamummy

We are a family of 2 kids, 2 parents but one income. We are lucky to have parents who have been able to help out monthly with our bills, food etc when we have needed the help - should I/we pay tax on this, if so, what is the limit? thanks.

HappyMJ

£1 million....there is no limit. No tax due however if they were to die then you may be liable to inheritance tax on any gifts in the last 7 years or so.

karenx

No but if its regular money like you say you will need to declare it if you receive any means tested benefits, ie housing and council tax benefit. So these will be reduced due to your extra income

2sides2everystory

Er ... pass that by us again, karenx - you think supportive parents/grandparents help financially of this nature should be declared to the authorities ?? Are you for real ??

Vejovis

2sides2everystory wrote: »

Er ... pass that by us again, karenx - you think supportive parents/grandparents help financially of this nature should be declared to the authorities ?? Are you for real ??

why not? income related forms ask if you have any money coming in from another source. this would be another source

2sides2everystory

Oh right ... so now the latest "Welfare" / "Benefits" forms contain an unwritten question which you must answer completely truthfully:

"Do you, as cohabiting adults with offspring voluntarily brought into this world of hurt, have comfortably off relatives who love you enough to let you have some of their money to make your life and their grandchildren's lives easier?"

"If so ye shall declare it and suffer your fate in order to satisfy all the erks of this world who never had that love and had to struggle all on their ownsomes within the rules in order to come out the other side as survivors well able to advise on those cheating fully functional families containing love and care and general concern for rellies who mightn't without the threat of some kind of Stasi influence declare every last penny of it as taxable gifts and income for decision makers to get paid real money to pore over."

Sheesh !

Elvisia

I actually had a similar question, I often look after my parents and I do jobs for them (for example I do all the cooking, and I continually fill up their freezer with homecooked food), and so I sometimes get a cheque which helps me as I am on JSA. It's cheaper for them to get me to help out than to pay for formal help. I asked if I had to declare this as income at the Job Centre, and they thought I was a bit mad, and said no definitely not.

rogerblack

2sides2everystory wrote: »

Oh right ... so now the latest "Welfare" / "Benefits" forms contain an unwritten question which you must answer completely truthfully:

You must declare income.
Regular payments are income.

http://www.dwp.gov.uk/docs/dmgch28.pdf
'Income is not defined in law. It can normally be separated from capital because a payment of income
1. forms part of a series of payments, whether or not they are made regularly or
2. is made for a period of time or
3. satisfies both the conditions in 1. and 2..'

However.

28493/4 - specifically, A regular gift can be a voulentary payment
28496 - voulentary payments are 'relevant payments'
28513 - relevant payments are disregarded.

The exceptions to 28513 are complex, but basically, the disregard above does not apply to 'liable relatives' - parents, partners or ex-partners, and seperate (less generous) rules apply to them. (250/year perhaps - I haven't read all the rules)

zzzLazyDaisy

If you are on means tested benefits, you are expected to declare any regular income. From time to time you may be asked to produce bank statements - it is not worth the risk. It is one thing a family member giving you a gift of money now and again to help you out, that's okay. But if they set up a standing order and pay you a regular (say) £50 a month into your bank account, that is not okay and there is a risk that it may be taken as income.

agrinnall

It might be better if the parents actually paid for things such as food, kids clothes, etc., but not bills (as that would leave a record) rather than giving you the money to spend yourself. Not so easy of course if they don't live close to you but even then internet shopping might be a way round it.

Vejovis

2sides2everystory wrote: »

Oh right ... so now the latest "Welfare" / "Benefits" forms contain an unwritten question which you must answer completely truthfully:

"Do you, as cohabiting adults with offspring voluntarily brought into this world of hurt, have comfortably off relatives who love you enough to let you have some of their money to make your life and their grandchildren's lives easier?"

"If so ye shall declare it and suffer your fate in order to satisfy all the erks of this world who never had that love and had to struggle all on their ownsomes within the rules in order to come out the other side as survivors well able to advise on those cheating fully functional families containing love and care and general concern for rellies who mightn't without the threat of some kind of Stasi influence declare every last penny of it as taxable gifts and income for decision makers to get paid real money to pore over."

Sheesh !

so it's okay for the taxpayer to pay for people to have their cake and eat it s long as mummy and daddy are rich?

so if little Tarquin grows up to be a dosser, it's okay for mummy to send him cheques for a grand a week and for him to claim all the benefits he can, because it's a loved one sending him money?