Tax Credits and Premium Bonds- Please Read!

shedboy94

Icequeen99 wrote: »

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

Unfortunately guidance is often wrong and advisers HAVE to follow guidance.....even if they know it is wrong.......common sense is never allowed to prevail. The rules based system is littered with many known errors.

Oh and human error can happen now and again.

zagfles

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

This isn't just a trivial mistake, it's a fundamental misunderstanding of the way tax credits work, and the difference between capital and income.

If they'd said to declare the premium bond prizes, that would be a "mistake" (like a bus driver taking a wrong turning), but telling the claimant to enter a capital holding in "other income" is simply incompetance (like a bus driver confusing the accelerator and brake pedals!). And incompetance which could cost claimants thousands.

Someone with so little understanding of tax credits should not, IMO, be working for the "helpline".

shedboy94

zagfles wrote: »

This isn't just a trivial mistake, it's a fundamental misunderstanding of the way tax credits work, and the difference between capital and income.

If they'd said to declare the premium bond prizes, that would be a "mistake" (like a bus driver taking a wrong turning), but telling the claimant to enter a capital holding in "other income" is simply incompetance (like a bus driver confusing the accelerator and brake pedals!). And incompetance which could cost claimants thousands.

Someone with so little understanding of tax credits should not, IMO, be working for the "helpline".

So you are assuming the adviser was wrong and not the guidance they were following. What has led you to that assumption?

zagfles

shedboy94 wrote: »

So you are assuming the adviser was wrong and not the guidance they were following. What has led you to that assumption?

What are they, an "adviser" or a script monkey? An "adviser" should have some basic understanding of the subject they're giving "advice" on, and if some guidance says something which is obviously wrong they should be reporting it, escalating it, not following it blindly.

Someone I know moved to the US many years ago and bought the equivalent of their highway code. In it it says "you drive your car on the pavement". Maybe he should have taken that literally and on ploughing down all the shoppers on 5th Avenue should have said "I was only following the guidance". :rotfl:

Icequeen99

shedboy94 wrote: »

So you are assuming the adviser was wrong and not the guidance they were following. What has led you to that assumption?

I think (apologies Zagfles if I am wrong) that Zagfles is suggesting it makes no difference if the guidance is wrong or not but that people on the helpline should understand the basics and rules of tax credits. One of which is that capital is not counted as income.

If the helpline were trained to that level, they would know if the guidance was wrong.

I would be surprised if the guidance actually said that the claimant must include the amount of their premium bond holding. I think it is much more likely that the wording of the guidance was interpreted as requiring that.

IQ

Inapickle1

Icequeen99 wrote: »

I think (apologies Zagfles if I am wrong) that Zagfles is suggesting it makes no difference if the guidance is wrong or not but that people on the helpline should understand the basics and rules of tax credits. One of which is that capital is not counted as income.

If the helpline were trained to that level, they would know if the guidance was wrong.

I would be surprised if the guidance actually said that the claimant must include the amount of their premium bond holding. I think it is much more likely that the wording of the guidance was interpreted as requiring that.

IQ

I have not misunderstood what they said. I was told by an advisor and then a supervisor I had to include the bonds. They read the information they had on the system to me. I disputed this and cited the rules for savings accounts but they told me I was wrong.

I have written to them and sent it today- when I hear back I will post an update.

I am grateful for the advice and used it in my letter.

Many Thanks everyone.

durley

It is true. The WTC is changing over to Universal Credit and all savings have to be declared, If you have over £6000 you will lose some WTC and if u have £16000 you will no longer be entitled.

Inapickle1

durley wrote: »

It is true. The WTC is changing over to Universal Credit and all savings have to be declared, If you have over £6000 you will lose some WTC and if u have £16000 you will no longer be entitled.

Is this the same for child tax credits (not working tax credits)?

Also the changes are supposed to apply to new entrants first aren't they?

sunnyone

Inapickle1 wrote: »

Is this the same for child tax credits (not working tax credits)?

Also the changes are supposed to apply to new entrants first aren't they?

No it will apply to all, including you and so you dont want to get used to getting tax credits because you may get them this year but not as soon as universal credit comes in.

You have £30k in premium bonds so you certainly dont need means tested benefits.

Inapickle1

sunnyone wrote: »

No it will apply to all, including you and so you dont want to get used to getting tax credits because you may get them this year but not as soon as universal credit comes in.

You have £30k in premium bonds so you certainly dont need means tested benefits.

I didn't say I did need means tested benefits- I was questioning whether the advice I was given about the current tax credits was correct.