Child tax credits and savings

Laurasdave

Hi

My wife and I are currently renting, we have 3 children. I work full time and my wife is a stay at home mum, she claims child tax credits and child benefit.

We are desperately trying to save for a deposit towards a house.

We have saved almost £6000 so far and are able to save just over £500 a month.

My question is now we are just about to go over the £6000 threshold will this affect my wife's child tax credits she recieves/do we need to declare this?

I've read mixed opinions such as child tax credit aspect only need to know if interest earnt on savings and do not care about savings?

I've also read that it's universal tax credits which we should be changing too next April which will definitely need to know ehat savings we have.

Any advise on the above is welcome please

Darksparkle

https://www.gov.uk/guidance/tax-credits-working-out-income#other-income

Income to include over £300
Add up the full amount of the following types of other income, then take off £300.
Interest on savings
Include the amount before tax is taken off. Don’t include interest from tax-exempt investments like ISAs.

HappyMJ

Laurasdave wrote: »

Hi

My wife and I are currently renting, we have 3 children. I work full time and my wife is a stay at home mum, she claims child tax credits and child benefit.

We are desperately trying to save for a deposit towards a house.

We have saved almost £6000 so far and are able to save just over £500 a month.

My question is now we are just about to go over the £6000 threshold will this affect my wife's child tax credits she recieves/do we need to declare this?

I've read mixed opinions such as child tax credit aspect only need to know if interest earnt on savings and do not care about savings?

I've also read that it's universal tax credits which we should be changing too next April which will definitely need to know ehat savings we have.

Any advise on the above is welcome please

Savings do not affect child tax credits.

They do affect universal credits so spend them before then without wasting them and you can keep your full allowance.

They also do affect housing benefit so if you get any HB then that will be reduced.

And...it's not your wife's child tax credits it belongs to both of you to raise your child with. If there is an overpayment as you are on the claim you have to pay it back from your income even though the money was credited to your wife's account. Sorry about being pedantic. All money coming in to the household is money available to raise the child with and that includes your income and any benefits the both of you are entitled to.

Laurasdave

Thank you for the reply

We only claim CTC so thsts good news and gives us almost a year to try and get on the housing ladder.