When to declare I'm above Capital Limits?

tomb50

Afternoon to anyone reading this. I've asked this question before but didn't get a definitive answer, (Bearing in mind I'm not the brightest bulb in the pack!)

The situation is, I currently receive Pension Credit,HB,CTR and a small company pension.

When the various payments reach my bank account, for half the month I'm above the capital limits (£10,000) by a few hundred pounds. After paying bills etc the rest of the month I'm back below the limit.

So the question is, do I inform DWP now that I'm over the Capital Limit for PC, or do I wait until I'm over for the full month. (Hopefully in a few months time - I officaly retire next year and trying to save as much as I can by then.)

Also another question. As I get older I find I'm relying more and more on Online banking for paying bills etc. Wih all the news of online fraud I've opened a new bank account which I intend to use for Online banking only. Do I need to inform DWP of this new bank account?

While a relative newcomer to the benfits systems, in the short time I have been dealing with DWP, I've become totally disillusioned with them, very much hit & miss depending who you deal with. What I want to avoid is DWP contacting me a few years time and telling me I owe them money.

Any help with the above will be much appreciated

Morglin

http://www.entitledto.co.uk/help/savings.aspx

Lin

atrixblue.-MFR-.

tomb50 wrote: »

Afternoon to anyone reading this. I've asked this question before but didn't get a definitive answer, (Bearing in mind I'm not the brightest bulb in the pack!)

The situation is, I currently receive Pension Credit,HB,CTR and a small company pension.

When the various payments reach my bank account, for half the month I'm above the capital limits (£10,000) by a few hundred pounds. After paying bills etc the rest of the month I'm back below the limit.

So the question is, do I inform DWP now that I'm over the Capital Limit for PC, or do I wait until I'm over for the full month. (Hopefully in a few months time - I officaly retire next year and trying to save as much as I can by then.)

Also another question. As I get older I find I'm relying more and more on Online banking for paying bills etc. Wih all the news of online fraud I've opened a new bank account which I intend to use for Online banking only. Do I need to inform DWP of this new bank account?

While a relative newcomer to the benfits systems, in the short time I have been dealing with DWP, I've become totally disillusioned with them, very much hit & miss depending who you deal with. What I want to avoid is DWP contacting me a few years time and telling me I owe them money.

Any help with the above will be much appreciated

new account Yes declare it, they can do a check to find it anyway and only looks bad on you if you don't.


with the income above set limits, if the limit is 10K and you get 10K then your on the limit, any deductions for bills is not counted in this calculation by the DWP and thus your theory of being under the limit when you spend out on bills is a wrong theory.

Mojisola

tomb50 wrote: »

When the various payments reach my bank account, for half the month I'm above the capital limits (£10,000) by a few hundred pounds. After paying bills etc the rest of the month I'm back below the limit.

Wouldn't it be simpler to spend, say, £500, and stay under the limit all the month?

rogerblack

tomb50 wrote: »

When the various payments reach my bank account, for half the month I'm above the capital limits (£10,000) by a few hundred pounds. After paying bills etc the rest of the month I'm back below the limit.

Something can't be both income and capital.

Income becomes capital at the end of the period it is due for, when it's unspent.
So, if you have the money when the next months payment go in - it's now capital.
Up until that point, it's income.

The vastly simpler way is not to worry about it, and as above - spend 500 pounds to keep you below 10K all month.

Do you have any appliances that are wearing out, or perhaps taking more electricity than a modern one to run? (freezers are a big candidate).

tomb50

Mojisola wrote: »

Wouldn't it be simpler to spend, say, £500, and stay under the limit all the month?

Many thanks for the replies.

As I said in the original post, I expect to be permanently above the limit in the near future, so the question was do I tell DWP now or wait until I am.

Again, thanks for replies, most were very useful.

Mojisola

I would wait until you are over it permanently. The paperwork required to decrease and increase your PB every couple of weeks will cost more than they can take back from you.

If, when you go over the £10k and you tell them, point out that you've had the occasional week over the limit and let them decide whether to backdate the charge in one go.

fluffymovie

What type of Pension Credit do you receive? If it's Pension Credit Guaranteed Credit, you are likely on an assessed income period and for the benefits I deal with (HB/ CTRS) this means we aren't interested in your capital.

Mojisola

fluffymovie wrote: »

What type of Pension Credit do you receive? If it's Pension Credit Guaranteed Credit, you are likely on an assessed income period and for the benefits I deal with (HB/ CTRS) this means we aren't interested in your capital.

It's an AIP only given to over 65s?

tomb50

Mojisola wrote: »

I would wait until you are over it permanently. The paperwork required to decrease and increase your PB every couple of weeks will cost more than they can take back from you.

If, when you go over the £10k and you tell them, point out that you've had the occasional week over the limit and let them decide whether to backdate the charge in one go.

Thanks for this excellent advice, as you say it's a fine line between keeping DWP up to date and not clogging up an already overworked system with unnecessary paperwork.

Fluffymovie. I'm not in an AIP and assume that any reduction in PC will be reflected in HB & CTR reductions.

anmarj

Mojisola wrote: »

It's an AIP only given to over 65s?

You are correct, but aip's are being abolished in April 2016 so he might get a very short one