Where to put around £10k without losing Tax Credis (Help Needed)

TCA

colsten wrote: »

I do hope that assets, at least liquid ones, will be taken into account in future before tax credits are awarded.

I think the Universal Credit does this, which may actually be the point of the initial question. It appears there will be a lower capital limit of £6k and an upper limit of £16k, but for those already on tax credits or benefits, there is "transitional protection", where they are paid an amount so they're not worse off under the new rules:

http://www.revenuebenefits.org.uk/tax-credits/transition-to-universal-credit/overview-of-universal-credit/capital-rules/

http://www.revenuebenefits.org.uk/tax-credits/transition-to-universal-credit/overview-of-universal-credit/transitional-protection/

colsten

Many thanks TCA, your links provide very pertinent information, and as you say, it looks as if UC implements just the sort of limits I would expect a society like ours should have for benefits.

The upper limit is £16000, so anyone with savings (capital) over £16,000 cannot get Universal Credit.

Eco_Miser

xylophone wrote: »

"What ‘notional income’ means.

notional income also includes income that you can be treated as having which you may not in fact have, such as:

• income you may have deprived yourself of for the purpose of getting a tax credit or more tax credits"

This looks very pertinent to the OP's plans.

dori2o

Alter_ego wrote: »

No fraud advice here

You won't be providing fraud advice. There is no limit on the amount of savings an individual/household can have whilst claiming Tax Credits. The only thing they are interested in is any interest received on the capital, and then they only need to know about any interest received which (including any other non employment/pension income/self employed profits) is in excess of £300.

OP stick in an ISA if you have £10k of your ISA allowance left for this year.

dori2o

colsten wrote: »

Me neither but it appears the system is encouraging them to do so.

It feels a bit like leaving my purse on the kitchen counter and rich neighbours helping themselves to the contents when I invite them for a coffee.

Which party can I vote for that will make tax credits means tested?

They are means tested. They just don't take into account savings.

colsten

dori2o wrote: »

They are means tested. They just don't take into account savings.

They will be under UC. Not a moment too soon.

A_Flock_Of_Sheep

Means Testing under UC. There's s reason to blow your savings on a decent car and several holidays.

Although it apparently applies only to new applicants of UC. Those under the old scheme moving to UC can have limitless savings.

A_Flock_Of_Sheep

Ohh and bunging your savings in a Sipp to take you under the threshold means you can have UC