Tax Credits and Premium Bonds- Please Read!

Inapickle1

I have been told by the tax credits helpline that they are not interested in the prizes you win but what capital you hold in premium bonds!!! So the exact opposite to bank accounts where they are only interested in the interest.

I had the maximum in premium bonds (even worse it was my child maintenance that I saved in my name..............).

Will I now get any tax credits? I am currently not working.

Many Thanks

Pickle the Idiot

zagfles

You were told rubbish, holdings of premium bonds are of no interest whatsoever to tax credits, neither the capital nor the prizes (as they are tax free).

fiesta04

Maybe OP means Council Tax as then they do count.

F4

Inapickle1

mgdavid wrote: »

the maximum holding of Premium Bonds is £30,000.
If you have this much savings & investments do you really think you are the type of case that the welfare state should be supporting?

If you read my post you would have seen it is saved CHILD maintenance so not my money.

Inapickle1

zagfles wrote: »

You were told rubbish, holdings of premium bonds are of no interest whatsoever to tax credits, neither the capital nor the prizes (as they are tax free).

This is what I was told last year at renewal time but this year I have been told by a supervisor at tax credits that you have to put what you hold in premium bonds in the other income section!!

This seems strange to me since its the opposite of bank accounts and I could have held the bonds for only a month and yet would still have to put the amount in the other income section.

Thankyou for trying to help.

Inapickle1

fiesta04 wrote: »

Maybe OP means Council Tax as then they do count.

F4

No my post was correct but thankyou for trying to help.

zagfles

Inapickle1 wrote: »

This is what I was told last year at renewal time but this year I have been told by a supervisor at tax credits that you have to put what you hold in premium bonds in the other income section!!

This seems strange to me since its the opposite of bank accounts and I could have held the bonds for only a month and yet would still have to put the amount in the other income section.

Thankyou for trying to help.

This is such utter tripe - there is no way you should be putting a capital holding in the "other income" section!! This could have cost you thousands in tax credits. I'd suggest a letter of complaint giving the date and time of your call, maybe write to your MP, whoever told you that needs sacking or at least retraining!

sleepless_saver

I'd be asking them to point out exactly where in their Tax Credits Manual (which is available online) it says this.

Can't help adding : (Unless you're a higher rate taxpayer with a lot of other savings) would you not be better moving this money to a decent savings account, cash or S&S ISA especially if you're planning for children's future? The expected rate of return would be a lot better. What you have now is a long way from keeping pace with inflation. See Martin's article.

skintandscared_2

Inapickle1 wrote: »

If you read my post you would have seen it is saved CHILD maintenance so not my money.

Of course it is your money. I think you are highlighting the wrong word. The key word here is MAINTENANCE. It is benefit you are given to help raise your child(ren), it's not their pocket money!

It is stashed away in your name and you have direct access to it (it takes about 5 days to cash them in these days). It should be notified as savings (it's not income) for the purposes of any means-tested benefits that it affects (maybe none in your case).

Inapickle1

zagfles wrote: »

This is such utter tripe - there is no way you should be putting a capital holding in the "other income" section!! This could have cost you thousands in tax credits. I'd suggest a letter of complaint giving the date and time of your call, maybe write to your MP, whoever told you that needs sacking or at least retraining!

They read to me from the computer screen that premium bond holdings count as other income!! It seemed wrong to me and thats why I asked to speak to a supervisor who said the same thing!

I took everyones name and will be writing for clarification.

Many Thanks

Inapickle1

sleepless_saver wrote: »

I'd be asking them to point out exactly where in their Tax Credits Manual (which is available online) it says this.

Can't help adding : (Unless you're a higher rate taxpayer with a lot of other savings) would you not be better moving this money to a decent savings account, cash or S&S ISA especially if you're planning for children's future? The expected rate of return would be a lot better. What you have now is a long way from keeping pace with inflation.

They read this information to me from the computer!

Your right I should do something else with the money!

Thankyou