universal tax credits

benefitbaby

Not necessarily it boils down to who is the beneficial owner of the money.

princessdon

benefitbaby wrote: »

Not necessarily it boils down to who is the beneficial owner of the money.

If parents pay money into the account then not only should this be declared if earning interest then if in their name, with access it is counted.

OP can and could have a child account, where they have no access to money and truly it is a child beneficiary, which won't count. If, they are using their child as a tax free saver, or to hide money for benefits, then of course it should be counted.

benefitbaby

I almost agree entirely with you princessdon, where we disagree is in relation to having access to the money and owning the money, these are two different things. I am not trying to suggest that anyone deprive themselves of capital I am merely trying to differentiate.

princessdon

benefitbaby wrote: »

I almost agree entirely with you princessdon, where we disagree is in relation to having access to the money and owning the money, these are two different things. I am not trying to suggest that anyone deprive themselves of capital I am merely trying to differentiate.

But IS etc don't allow tee accounts funded by parents so why should tax credits?

My children have the following savings

A) grandparents (not mine, not counted if I claim)
ISA - only axpccessible when 18 (not counted)
C) trust funds (not counted)
d) their own name (not counted)
E) in tee accounts, where interest is taxed at 40% as parental funded - (counted)

benefitbaby

IS, JSA, tax credits will accept an account where the beneficial owner is the child unless there is a proven deprivation of capital issue perpetrated by the parent.

For example my child has a bank account it is in her name but as s/he is under 16 the bank require an adult to be named on the account. I so furnish my name and so can deposit or withdraw money on behalf of the child. Neither the account or the money contained within belong to me so it is disregarded from any means-tested benefit calculation. This will remain so when UC is implemented.

princessdon

benefitbaby wrote: »

IS, JSA, tax credits will accept an account where the beneficial owner is the child unless there is a proven deprivation of capital issue perpetrated by the parent.

For example my child has a bank account it is in her name but as s/he is under 16 the bank require an adult to be named on the account. I so furnish my name and so can deposit or withdraw money on behalf of the child. Neither the account or the money contained within belong to me so it is disregarded from any means-tested benefit calculation. This will remain so when UC is implemented.

No you declare over £3k in child's names and they decide.

I'm no hypocrite - I save using my children to avoid tax (up to allowed interest rates). I have no intention ever of removing a penny, not 1 withdrawal ever, BUT if needed I have access and expect DWP to treat as mine as IF I wanted to give fully without control, it would be in a Jisa.

benefitbaby

princessdon wrote: »

No you declare over £3k in child's names and they decide.

I think that is what I said "IS, JSA, tax credits will accept an account where the beneficial owner is the child unless there is a proven deprivation of capital issue perpetrated by the parent."

Anyhoo, I am off to my slumber have a good night all

princessdon

benefitbaby wrote: »

I think that is what I said "IS, JSA, tax credits will accept an account where the beneficial owner is the child unless there is a proven deprivation of capital issue perpetrated by the parent."

Anyhoo, I am off to my slumber have a good night all

Agreed but its far too easy to use this loophole at present. People on TC have had an easy ride and it needs to end. Giving an opt out of transferring to a child's name they retain ownership of is wrong.

Imagine like OP - they have EXACTLY 6k in savings (what is the chances of that?), I'd hope they'd look long and close at children's bank accounts over 3k and apply common sense and DOC if large deposits or increased deposits take place to close in someway this loophole.