Tax Credits and Premium Bonds- Please Read!

Inapickle1

skintandscared wrote: »

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).

I know it is not pocket money but I am in a terrible domestic abuse situation with the ex who is mentally unstable. I knew he would stop paying and so have saved anything from him as I knew the maintenace would stop on a whim (as it has before). Thats why we used other money to live on while we could. I thought I was doing the right thing.

Many Thanks

skintandscared_2

Inapickle1 wrote: »

I know it is not pocket money but I am in a terrible domestic abuse situation with the ex who is mentally unstable. I knew he would stop paying and so have saved anything from him as I knew the maintenace would stop on a whim (as it has before). Thats why we used other money to live on while we could. I thought I was doing the right thing.

Many Thanks

I'm not having a go about saving it, just pointing out that it isn't the kids' money - it's still yours. I understand why you would want a safety net and this is it, but if you need it you will have access to it and use it, which is why it should rightly be notified as your savings, not the childrens'.

sleepless_saver

Inapickle1 wrote: »

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

They may have read it from the computer but that doesn't mean they read it right (or that it was right). I'd ask them for the exact reference in the manual so you can look at it for yourself and seek specialist help if need be.

I'm with zagfles, it sounds like complete rubbish and possibly one for a letter to your MP as they may be telling other people this as well.

zagfles

Inapickle1 wrote: »

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

I'd ask them exactly what they were looking at. The tax credits technical manual is here : http://www.hmrc.gov.uk/manuals/tctmanual/index.htm and it clearly defines income & investment income and there is nowhere it states than a capital holding of premium bonds (or any capital holding) is treated as income. Income menas money "coming in", not money you already own!

Icequeen99

And the TC600 notes http://www.hmrc.gov.uk/forms/tc600-notes.pdf
here clearly state it is the INCOME from investments that they are interested in, not the capital amount itself.

And it confirms that you should not include tax-exempt things like ISAs (which also includes premium bonds).

IQ

Inapickle1

skintandscared wrote: »

I'm not having a go about saving it, just pointing out that it isn't the kids' money - it's still yours. I understand why you would want a safety net and this is it, but if you need it you will have access to it and use it, which is why it should rightly be notified as your savings, not the childrens'.

Sorry I DIDN'T think you were being unkind!

I go without all the time and I guess in my mind I have become entrenched in seeing this as the childrens money so that I can feel more able to protect them.

Thanks again

Inapickle1

sleepless_saver wrote: »

Inapickle1 wrote: »

They may have read it from the computer but that doesn't mean they read it right (or that it was right). I'd ask them for the exact reference in the manual so you can look at it for yourself and seek specialist help if need be.

I'm with zagfles, it sounds like complete rubbish and possibly one for a letter to your MP as they may be telling other people this as well.

Great advice which I am going to take!

Many Thanks

Inapickle1

here clearly state it is the INCOME from investments that they are interested in, not the capital amount itself.

And it confirms that you should not include tax-exempt things like ISAs (which also includes premium bonds).

IQ[/QUOTE]

They said that they don't include the prizes in the case of P.B but do the holdings!!!

Many Thanks

shedboy94

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!

Maybe shoot them as well..........how DARE they make a mistake. Presumably you are perfect and have never made a mistake in your life.........:D

Icequeen99

shedboy94 wrote: »

Maybe shoot them as well..........how DARE they make a mistake. Presumably you are perfect and have never made a mistake in your life.........:D

Absolutely, people do make mistakes, but aren't the helpline supposed to follow the rules based system/guidance which means there shouldn't be mistakes on issues like this.

Either the guidance is wrong or they have not read the guidance.

And the fact of the matter is, the consequences of making a mistake on the helpline can be massive (overpayments, loss of entitlement). If only CSSG took your attitude about mistakes, your compliance teams certainly don't let claimants off so easily when they make mistakes.

IQ