Working tax credits - capital change

Brilaw

Hi all, I'm a new member so please bear with me ..

I'm a self employed person on a very low income currently receiving working tax credits

I've been made aware that I may be receiving a small sum of money from a family member (probate) .. approx £9k

My understanding is that working tax credits eligibility is based on income only, not capital changes, is this personal windfall something I need to report ? .. I am aware that (a) I would in future need to report interest income over £300 p.a. and (b) that if/when I were to move over to universal credit that the capital amount would be a prohibitive amount.

Thanks in advance for your feedback.

calcotti

You are correct that you do not have to report capital for tax credits, only interest over £300 (if it is taxable, so interest in an ISA account, for example, is ignored).
https://revenuebenefits.org.uk/tax-credits/guidance/how-do-tax-credits-work/what-is-income/investment-income/

You are only excluded from UC if you have capital over £16,000 although any capital over £6,000 will reduce the amount of UC payable by £4.35/month for every £250, or part thereof, over £6,000. When ‘managed migration’ from tax credits to UC takes place there will be a 12 month waiver of the capital limit.