How can I make £18,000 work for me?

jamesd

Normally a deed of variation can be used to modify a will after death. Unfortunately when you are receiving benefits already it's too late to do this because it would be signing away the money and would be classed as deprivation of assets. If planning had been done options like splitting the inheritance between parent and children or using a discretionary trust would have worked to eliminate the loss.

If you were in a cheaper area you could have done something like buying a home or buying part of a home, perhaps even a 25% interest if you were able to get a mortgage. That would reduce the ongoing rental bill and avoid it being deprivation.

Using some for energy-efficient appliances to reduce spending can be useful, though. This and a not particularly expensive holiday plus some other routine purchases of durable things like clothes will get you under the savings caps more quickly.

keymaster234

It really depends on your objectives?
If you want to save it for the long term, go with long term investments.
If you want it to grow faster than depositing it to a bank account, go venture into business.

xylophone

Does your employer provide a pension scheme? Will have to at some point if not.

In the mean time, you might consider one for yourself? http://www.cavendishonline.co.uk/pensions/

There is tax relief on pension contributions -and see here for effect on tax credits http://www.hmrc.gov.uk/manuals/tcmanual/tcm0322175.htm

A person may invest up to the total of their earnings (before deduction of personal allowance) in a pension scheme but will pay this net of basic rate tax. For example where the earnings are £6K, he can make pension contributions of up to £6K gross (£4,800 net) and HMT will add £1,200 to his pension pot and he will pay no tax.

A person may make a net contribution of £2,880 and HMT will add £720, whether or not he has any earnings.

The relief is given by extending the basic rate band rather than by deducting the amount from earnings.

http://www.housepricecrash.co.uk/forum/index.php?showtopic=194360 might be worth a look.

Archi_Bald

xylophone wrote: »

For example where the earnings are £6K, he can make pension contributions of up to £6K gross (£4,800 net) and HMT will add £1,200 to his pension pot and he will pay no tax.

Presumably it doesn't have to be a he?