Benefits and capital/current account

benefitbaby

Personal injury compensation/payment are still definitely disregarded for 52 weeks .... from Decision Maker Guidance:

Payment for personal injury

[FONT=Arial,Helvetica][FONT=Arial,Helvetica]29509 Any lump sum payment made because of a personal injury to the claimant or partner and not placed in trust is disregarded for a period
[/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica]

1. beginning with the first date of receipt by the claimant or partner of such a payment[/FONT][/FONT]and [FONT=Arial,Helvetica][FONT=Arial,Helvetica]
   
2. ending when[/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT]
   

[/FONT]2.1

[FONT=Arial,Helvetica][FONT=Arial,Helvetica]the claimant or partner no longer has any part of the payment remaining (including where the claimant or partner has used any part of the payment to buy an asset) [/FONT][/FONT]or
2.2

[FONT=Arial,Helvetica][FONT=Arial,Helvetica]52 weeks have elapsed [/FONT][/FONT]
[FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica]whichever is the sooner1.
[/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT][FONT=Arial,Helvetica][FONT=Arial,Helvetica][/FONT][/FONT][FONT=Times New Roman,Times][FONT=Times New Roman,Times]
1 JSA Regs, Sch 8, para 17A; IS (Gen) Regs, Sch 10, para 12A

Sorry.. couldn't get the formatting right!!
[/FONT][/FONT][FONT=Times New Roman,Times][FONT=Times New Roman,Times][/FONT][/FONT][FONT=Times New Roman,Times][FONT=Times New Roman,Times][/FONT][/FONT]

Heycock

That seems to settle it. Many thanks Baby!:beer::j

missapril75

Heycock wrote: »

When working out capital for HB and IS, money sitting in the current account is included, but as both my and wife's accounts fluctuate between credit and overdrawn through the month what figure do they take?

Capital is not supposed to include income that would be spent prior to the next payment of that income. That would be having regard to it for benefit purposes twice.

Most probably they'll take a date of claim (or review date) and just note the balances on that date. That may or may not show the true picture if it is only that amount because income has recently gone in and will be spent before the next income of the same type goes in.

If you can look at your statements and show your "real" balances after payment of last bill and just before the next income, you may be able to convince them those are the real balances.

If you find that difficult after you've had budgeting experience with your own accounts, it's likely to be impossible for them.:eek:

If it's not too late, probably the best thing to do is to pick 2 or 3 dates, note the balances on each account on those dates and then pick the balance most advantageous to you.

Considering they're looking at multiples of £250 it might not make any difference anyway.

Also, they don't want to muck around with changing balances any more than you do so if you can lead them to something reasonable, so much the better.

[Deleted User]

missapril75 wrote: »

Capital is not supposed to include income that would be spent prior to the next payment of that income. That would be having regard to it for benefit purposes twice.

Most probably they'll take a date of claim (or review date) and just note the balances on that date. That may or may not show the true picture if it is only that amount because income has recently gone in and will be spent before the next income of the same type goes in.

If you can look at your statements and show your "real" balances after payment of last bill and just before the next income, you may be able to convince them those are the real balances.

If you find that difficult after you've had budgeting experience with your own accounts, it's likely to be impossible for them.:eek:

If it's not too late, probably the best thing to do is to pick 2 or 3 dates, note the balances on each account on those dates and then pick the balance most advantageous to you.

Considering they're looking at multiples of £250 it might not make any difference anyway.

Also, they don't want to muck around with changing balances any more than you do so if you can lead them to something reasonable, so much the better.

they will usually ask for at least 3 months bank statements and then 12 months later at least 3 months pref 6 months,if there is a change in between it is the claimants responsibility to inform

Sixer

Why don't you just start a payment plan with HMRC and start paying the tax that will become due whenever on a monthly basis? Easy to do within self assessment.

Heycock

Sixer...I already do but nowhere enough to cover the whole potential bill. Several reasons...If you've already paid something on account, it gives you bargaining room at a later date if you DO need to negotiate a settlement. Also keeping the money in a savings account means I still have access to the money in an emergency. Yes, there are arguments against rainy day money...Martin Lewis is vehemently against the concept...but in an emergency I have no other access to funds. No credit, no formal overdraft facility(I can go O/D for a limited time each month by special arrangement but strictly speaking it's banned on a basic account) on MY account, no rich family or friends, just me.
When the bill HAS to be paid, I'll pay it. Until then I've got a little security

Thanks to everyone else for the advice. With what you've all said about disregard of personal injury payouts and looking at bank statements historically rather than a snapshot approach (with the snapshot taken on the wrong day!), hopefully I'll be OK.

missbunbury

Surely if you are planning to use the money for something other than your tax bill you can't really argue that you are only holding the money for HMRC? I'd just pay the tax you owe now if I were you, it must be possible to do it early if you are winding up your business?

benefitbaby

Given that the OP's personal injury payment is disregarded/ignored, the OP is below the £6k lower savings threshold and thus can qualify for means-tested benefits without the HMRC/tax savings becoming an issue.