savings tax credits UC

niggyp

Hi

i was wondering how savings would work under the forthcoming changes to tax credits

say if you have some capital that you are intending to save for the kids future (university..deposit on a first house etc) under the current rules you declare the intrest which is fine but as far as i know under the new system it would affect the amount of child tax credits you recieve

WHAT about someone with a tidy sum worked hard for and put away or say someone who has recieved a payment for injuries or money saved from the sale of a house..maybe even a cash win..they could loose all their credits and have to live off what they had saved

HappyMJ

niggyp wrote: »

Hi

i was wondering how savings would work under the forthcoming changes to tax credits

say if you have some capital that you are intending to save for the kids future (university..deposit on a first house etc) under the current rules you declare the intrest which is fine but as far as i know under the new system it would affect the amount of child tax credits you recieve

WHAT about someone with a tidy sum worked hard for and put away or say someone who has recieved a payment for injuries or money saved from the sale of a house..maybe even a cash win..they could loose all their credits and have to live off what they had saved

Agreed...What if you are saving for a house? You need 25% of the value of a house to get a good mortgage rate. Any reasonable house costs more than £100,000 so that's £25,000. Someone on £25,000 could afford a £75,000 mortgage and that family would still be entitled to some tax credits if they have a child yet if they save money they will lose tax credits altogether. Yes it is a problem.

Do not save for the kids future in your name. You have to gift the kids the money by putting it in their name....slowly...£50 a month into an account in their name should be enough for them to pay for driving lessons, university living costs, first month's deposit on a flat whatever. As you have gifted the money to your child unconditionally then it is not yours to count. You however have no say in how they spend it. If they spent it in a way you do not agree with then you cannot get it back.

As now payment for injuries can be excluded for some time and money from the sale of a house intended to be used to purchase another house can also be ignored for a period of time.

Money from a cash win....what's that gambling? That is and never will be excluded. If you win big on the bingo then it must be declared. Many people have been caught out by other people/jealous customers in the bingo hall calling up a few months later and reporting them for benefit fraud knowing they won £20,000 on the national game many months back yet see them signing on every few weeks or hear that they are still on benefits.

MissMoneypenny

niggyp wrote: »

Hi

i was wondering how savings would work under the forthcoming changes to tax credits

say if you have some capital that you are intending to save for the kids future (university..deposit on a first house etc) under the current rules you declare the intrest which is fine but as far as i know under the new system it would affect the amount of child tax credits you recieve

WHAT about someone with a tidy sum worked hard for and put away or say someone who has recieved a payment for injuries or money saved from the sale of a house..maybe even a cash win..they could loose all their credits and have to live off what they had saved

That's how income based welfare payments work; you support yourself until your savings, capital etc, is16k. Tax Credits are income based welfare payments.

The anomoly of Tax Credits not being treated the same as other income based welfare payments, will be righted under Universal Credit.

Income based welfare payments are there for those in need.

JonBiel

Where are these changes published I have tried searching and can not find any information?

HMRC have never asked about savings.

When are they due to come in?

We do not have a TV rearly read the papers and with all the good weather are a bit out of the loop at the minute.

Murgatroyd21

MissMoneypenny wrote: »

That's how income based welfare payments work; you support yourself until your savings, capital etc, is16k. Tax Credits are income based welfare payments.

The anomoly of Tax Credits not being treated the same as other income based welfare payments, will be righted under Universal Credit.

Income based welfare payments are there for those in need.

It wasn't an anomaly, the intention was to encourage show being in work was better than not being in work. The changes are showing people there is no regard to what they may be trying to achieve.

Look at all the advice about people living within their means, not getting in to debt, then look at the contradictory position of forcing young people looking to enhance their position through better education being pushed into tens of thousands of £'s debt before they've potentially earned a dime!