Are childrens savings considered your capital for entitlement to universal credit

pmlindyloo

redflwr wrote: »

I looked at the above link for savings accounts for children

Juniors ISA seems ok in theory

Move the money into the childs junior ISA so that the money can be saved for the child to use when they are 18

But will Universal Credit criteria see it that way?

This is what the purpose of saving for the children was anyway , so its not as if I am lying about the intention of use for the capital

what does anyone think?

appreciate advise

As someone has already said if you go onto UC your money will be protected for a while.

As tax credits did not take into account savings (except interest over £300 pa) then it is possible that this will not be seen as deprivation of capital. No way of knowing, I'm afraid unless someone who has had experience of this can comment.

sammyjammy

Its unlikely as an existing Tax credits claimant that you would go onto UC for years. Depending on how old your youngest child is it makes sense to act now and there would be no deprivation of capital. As you have access to the accounts as the law stands now it would be counted as yours and considered for benefit purposes.

xylophone

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/236960/hbgm-bw1-assessment-of-capital.pdf
regarding HB/CTB - is there something similar for WTC/UB?

At BW1 Assessment of Capital

"Whose capital should be included
W1.30 When calculating HB and CTB for working age claimants, treat the claimant as having the capital and income belonging to their partner. Read any reference in this chapter to a claimant
as applying to their partner.

HB Reg 25; CTB Reg 15
W1.31 When calculating HB and CTB for pensioners, see BP1 Assessment of capital.

Treatment of capital owned by child/young person
W1.32 Do not include a child’s or young person’s capital with the claimant’s when calculating the amount of capital to take into account.


http://www.netmums.com/coffeehouse/house-garden-194/money-finance-entitlements-267/450975-how-much-savings-you-allowed-have-all.html
might be worth a look.

However, on another point, if you have given money to your children outside tax privileged accounts like CTF/JISA, have you taken note of the "£100 rule" for tax?

See http://uk.virginmoney.com/virgin/savings/learn/childrens-accounts/

"Most children don’t pay tax, so the interest they receive on any savings will be tax-free.

There are special rules in place with HMRC if the savings have been given by a parent. If gifts from a parent produce more than £100 gross income a year, the whole of the income from the gift is normally taxed as the parent’s income and a child cannot get back any tax on that income. Nor can interest paying accounts be registered to have interest paid without tax taken off. The £100 rule applies separately to each parent. The £100 rule applies to income earned each year and it does not matter whether the fund is comprised of part capital and part added interest. The £100 rule applies as long as income is over £100 in any one year for any one child from one parent."

redflwr

Just when I think I have the some sort of solution another problems pops up

just realised that youngest 2 kids have cash and shares ISA (government scheme) so I cant open junior isa for them as you can only have one or the other

I know this may change in 2015 as mentioned on moneysavingexpert guide to childrens ISA's

Don't want to put money into existing shares ISA's because you might lose money on this plan

redflwr

My Question to above reply #14

Does this mean that If the saving account I have at the moment in the childs name, makes more than £100 interest then that the whole balance will be considered my income
I am a house wife and husband is employed part time and pays tax
I have not heard of the £100 rule and I think that only one childs account is able to make this amount (this saving account is not available anymore to new customers)
where do I stand regarding tax situation?

sheramber

redflwr wrote: »

Just when I think I have the some sort of solution another problems pops up

just realised that youngest 2 kids have cash and shares ISA (government scheme) so I cant open junior isa for them as you can only have one or the other

I know this may change in 2015 as mentioned on moneysavingexpert guide to childrens ISA's

Don't want to put money into existing shares ISA's because you might lose money on this plan

according to this they can have both

https://www.gov.uk/junior-individual-savings-accounts

zagfles

redflwr wrote: »

My Question to above reply #14

Does this mean that If the saving account I have at the moment in the childs name, makes more than £100 interest then that the whole balance will be considered my income
I am a house wife and husband is employed part time and pays tax
I have not heard of the £100 rule and I think that only one childs account is able to make this amount (this saving account is not available anymore to new customers)
where do I stand regarding tax situation?

Well as far as tax goes, if you gave them the money rather than your husband it shouldn't matter, since presumably you don't pay tax anyway.

Not sure how tax credits would view it though - but if your total interest is under £300 it won't matter anyway (assuming you have no other such income such as dividends etc)

What's the terms of your mortgage? It's rarely a good idea to have significant savings while you have debts (inc a mortgage) unless you're tied in or on some special deal where your mortgage rate is lower than the interest you earn on your savings. There are flexible mortgages where you can withdraw overpayments, so you can borrow back the money if you need it.

nannytone_2

lakes17 wrote: »

And in doing that if the DWP found out it would be treated as depravation of capital!

considering the full roll out of UC is still some way off...
and thhe savings are the chilfrens ...
moving the accounts now would lead to no deprovation of assets accusations.

redflwr

can anyone tell me how to paste the blue box with the post I want to reply to

sorry yes I'm a newbie!

Have looked at ISA link from gov.uk as suggested above

still confused as it states you cant get jnr isa if entitled to child trust fund

but then it says u can have both, is that only if u were not entitled to one when child was born

my 2 kids were entitled to shares -CTF when they were born

nannytone_2

just click the 'quote' button on the post you want to use