Parents financial help

MichJ81

This forum was very helpful with my last question so is now my go-to place as I can't find the answer elsewhere.


My parents transfer money to me each month to pay towards childcare costs (after school club). How do I declare this when I claim Working Tax Credit and Child Tax Credit (I will be putting in a new claim due to a change in my circumstances)?


Also, I have a savings account for my daughter. It is in her name but I can make withdrawals (it isn't one that is fixed with no access until she is 18). Do I need to declare the amount in the account as capital when I apply (there is about £2k)?

PersianCatLady

MichJ81 wrote: »

This forum was very helpful with my last question so is now my go-to place as I can't find the answer elsewhere.


My parents transfer money to me each month to pay towards childcare costs (after school club). How do I declare this when I claim Working Tax Credit and Child Tax Credit (I will be putting in a new claim due to a change in my circumstances)?


Also, I have a savings account for my daughter. It is in her name but I can make withdrawals (it isn't one that is fixed with no access until she is 18). Do I need to declare the amount in the account as capital when I apply (there is about £2k)?

Some people won't think that this is "right" or "fair" but why don't your parents just pay for your daughter's after school club (ASC) directly?

That way you don't ever have the money and there is nothing to declare.

I presume that you are not claiming the childcare element of WTC if the costs of the ASC are being paid by your parents??

Only savings over £6,000 have an impact on SOME benefits. Child Tax Credit has no limit on savings, so in theory you could have £100,000 in the bank (as long as the interest is not over a certain amount) and your CTC would not be affected.

That said, I am almost certain that children's savings are taken into account when calculating benefits but I am just looking for a link to confirm that now.

Darksparkle

Why don’t your parents just pay for something else? For example pay a bill directly or do a shop? You won’t be able to claim for costs paid for by your parents.