Can I gift £200 per month to my parent on a pension

baldnut

Hi, my parents are currently on a state pension and struggling to make ends meet. I wanted to setup a standing order to gift them £200 per month. This money would of already been paid tax on.

Is this ok, do they have to declare it and will it effect their pension.

I also have a business and if required they could work for me and earn £25.00 each per week officially through the books would it be better for them to come and do a few hours work for this income, would they be allowed to earn £100 each a month?

Thanks in advance.

McKneff

Do they have any other income than state pension, pension credits, housing benefts, council tax benefit.
Have they checked that they are entitled to any of the benefits.

No private pensions?

baldnut

they get discount on council tax, they have the house which is just paid off worth around 100k but no other income or benefits.

Thanks for your help so far

jem16

baldnut wrote: »

they get discount on council tax,

You would need to check if receiving money from you or earnings would affect their council tax discount.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_10018923

scope

I wouldnt for a second worry about giving my parents money if they needed it.. Nor would I worry about giving my children they money they need.. (Provided I've got it.. ) They are my money and I do whatever I want with them.. And I would NOT declare it.. They will have a very hard proving anything if they wanted to look into it.

Mojisola

baldnut wrote: »

Hi, my parents are currently on a state pension and struggling to make ends meet. I wanted to setup a standing order to gift them £200 per month. This money would of already been paid tax on.

Is this ok, do they have to declare it and will it effect their pension.

I also have a business and if required they could work for me and earn £25.00 each per week officially through the books would it be better for them to come and do a few hours work for this income, would they be allowed to earn £100 each a month?

Thanks in advance.

Make sure first that they are claiming everything they are entitled to.

If you give them extra money through a SO it might affect the CTB.

Could you occasionally gave them some cash so it's not part of their regular income?

themull1

I would give them the cash every month.

BOBS

Why not pay a few of their bills instead - surely that is ok? Oil/heating, electric, phone etc, ......

real1314

Yes you can.

It would be classed as a voluntary payment, with nothing expected in return and is disregarded in all means tested benefits, including Council Tax Benefit.

"From the Decision maker's guide

What are voluntary payments
28493 A voluntary payment is a payment that
1. has a benevolent purpose and
2. is given without anything being given in return

Note: Voluntary payments should not be confused with payments to volunteers.
Guidance on payments to volunteers is given at DMG 26195 - 26196.
1 R(IS) 4/94
28494 A voluntary payment is similar to a charitable payment but it will not usually be made
from a charitable trust. Voluntary payments are usually paid for the benefit of an
individual. But DMs should recognize that charitable payments may also be made to
individuals
1. for the relief of poverty or
2. because a wider purpose is involved.


28495 The DM should consider
1. the background to and
2. reasons for
the payment when deciding if it is voluntary.
Example 1
Jim claims JSA. He declares that he gets a payment of £20 a week from his uncle,
Peter, towards the cost of running his car.
Peter makes the payment because Jim has been receiving JSA for some time and
needs a car to get around.
Peter makes the payment because of family ties and affection for Jim. Peter does
not expect or receive anything in return.
The DM decides that the £20 is a voluntary payment.
Example 2
Frances claims IS. She is retired and receives a payment of £4.50 a week from her
former employer in addition to her occupational pension.
The payment of £4.50 is paid to all former employees who worked for the company
for over 20 years.
The payments were awarded by the board of directors following criticism by
shareholders of the treatment of former employees with long service.
The DM decides the payment is not voluntary. This is because
1. the directors of the company are receiving in return for the payment greater
satisfaction from the shareholders
2. the company's image is improved
3. the payments are not made to help needy employees. Many of the people
receiving payments are quite well off

This covers the same ground as HB and CTB regs, and IS, JSA, Pension Credit etc.

You should check if they are entitled to any Pension Credit though, as that would also help them . :cool:

nonnatus

I don't know the answer to your question OP, but would you be MY child too? We can make it all official, I'll adopt you properly...:p

You are a very generous soul x

xylophone

http://www.adviceguide.org.uk/index/your_money/benefits_index_page_ew/benefits_for_people_over_sixty.htm
Make sure that they have everything to which they are entitled.