Universal Credit and Savings

Icequeen99

zagfles wrote: »

What do you think would happen for changes in circumstances which you don't currently have to tell tax credits about (ie aren't on the mandatory list http://www.hmrc.gov.uk/manuals/tctmanual/TCTM05100.htm) usually because they increase entitlement?

For instance say someone has 2 children and substantial capital, and is claiming tax credits quite happily. If they have another child:

1) before they are managed migrated - could they avoid being "naturally" migrated by not telling them/claiming for new child?

2) after being managed migrated - could they carry on getting TP by not notifying?

Same if childcare went up, etc. Stuff that's not mandatory to notify.

If would be a silly situation if someone with 2 children could carry on getting TP, but a change which would normally increase entitlement (eg the addition of a third child) stopped TP completely!

That's the million dollar question. It isn't clear from the detail as far as I can tell. Maybe the regulations will reveal all.

But I was wondering about the potential for not notifying, but it would involve some complicated better off calcs, and i suppose it depends on the penalty/change of circs regime in UC as to whether you could keep on not notifying.

I do think though it is misleading of the Government/DWP to assure people no one will lose out, because clearly some people will (not just relating to capital but other groups who fair worse under UC such as some people with disabled children).

IQ

gardenia101

annie1975 wrote: »

You can put all your savings into your offset mortgage,because you can take it out of your offset as and when you need it?

Do check the T&C of your mortgage before doing this - my flexible (rather than offset) mortgage has now changed how overpayments can be borrowed back & I now can't get this money back as my circumstances have changed & I fail the mortgage company's affordability check(which they have bought in after I made the overpayments.) :mad:

Thankfully this isn't a problem for me, but I would rather have had this "extra" money in an account where I can still get hold of it...

martin57

Hi folks,

Just reading this thread though to get a better understading of transitional relief for people being migrated from child tax credits to Universal Credit, and have over £16 k in savings

I wonder if anyone knows if the following could be classified as changes of circumstances,

1 if a child is getting a tax credit addition at the moment for being disabled, and were to cease getting it after being migrated to UC?

2 if the parent was to cease getting dla?

Thanks for any info on this as I realise its a very hazy vaague area at present.

Martin57

princessdon

One thing confuses me. At the moment they don't ask about savings (but this will form part of the new regs from April). If they then say delcare £15K and over the next 6 mos they accumulate £2K - then this would have to be notified and therefore a change in circumstances?

So as the savings fluctuate (buying car, or adding to the value) then this would need to be reported wouldn't it, as it would if they were on means tested benefits?

Icequeen99

martin57 wrote: »

Hi folks,

Just reading this thread though to get a better understading of transitional relief for people being migrated from child tax credits to Universal Credit, and have over £16 k in savings

I wonder if anyone knows if the following could be classified as changes of circumstances,

1 if a child is getting a tax credit addition at the moment for being disabled, and were to cease getting it after being migrated to UC?

2 if the parent was to cease getting dla?

Thanks for any info on this as I realise its a very hazy vaague area at present.

Martin57

They haven't published the list of changes that will trigger migration. If I was a betting person I would say that both of those could well be changes that trigger the ending of tax credits and a new claim for UC. That said even if they didn't, and they happened after claiming UC, if they are changes for that purpose it may be a problem.

IQ

cruger

Good link here



http://blog.cix.co.uk/gmorgan/

http://policyinpractice.co.uk/universal-credit/universal-credit-calculator/

FBaby

Soomething really needs to take place purely on the basis of maintenance not being included in tax credits consideration. A friend of mine works only 16 hours, but receives over £500 child maintenance a month and pays no mortgage (already paid off) on her property, so not only allowing her to afford a decent lifestyle working few hours, but to put money aside each month in savings.

Yet, there are many families struggling because their tax credits allocations are based on income before maintenance costs are taken out.