Being given a lump sum and don’t know what to do

beth1611

Is it fraud if I don’t have it though? I’ve given the cheque back to my parents

WhenIam64

To quote the maxim for those who have a lot (and I mean a lot of) money

The Duke of Westminster principle states:

Every man is entitled, if he can, to order his affairs so as that the tax attaching under the appropriate [Finance] Acts is less than it otherwise would be. If he succeeds in ordering them so as to secure this result, then, however unappreciative the Commissioners of Inland Revenue or his fellow taxpayers may be of his ingenuity, he cannot be compelled to pay an increased tax.”

So arranging your financial affairs logically is not fraud. Accepting it and hiding it would be. As far as you have told us, it is not an amount that accrues to you personally through an inheritance as it would be a gift. When the money is donated is totally within the control of the other person. You can influence it but not dictate it.

Drawingaline

Child tax credits may not be affected. You can have savings as long as the income from those savings isn't over a certain amount. And with interest rates so low it may not be. Other benefits would be affected by the 6k thing.

Although I do have to ask why you are in an IVA if you don't own property? I thought it was only done to protect home owners instead of declang bankruptcy?

beth1611

I went to stepchange when I couldn’t pay the debt anymore and they said an Iva was the way forward

beth1611

I got it wrong- my Iva doesn’t end for 29 months not the 17 I thought

ohdearhowdidthathappen

I'm not an expert, but can you ask about full and final settlements on your debts and therefore pay some of the total debt off, but not the total amount? If you offered, for example, 50% you'd be left with £17K of your gift and not have an IVA anymore. I completely understand you were paying off your exh debts, but unfortunately as soon as you did, they did become yours. Perhps use this gift to free yourself of the burden?
I'd then be tempted to save £5K in your name and the rest in your childrens'.
I think you might be pleasantly surprised if you enquired about full time work; you'd get 70% of your childcare paid for by working tax credits. Your children are school age, so you'd only require before/after school childcare and holiday cover, which is all very affordable if you're only paying 30% of it. Once your eldest is in secondary, would you even need childcare for that child?
Is it worth investing some of your gift in a course to retrain and increase your earning potential?
Good luck for the future, you sound like you've been through a lot x

beth1611

The only holiday club round here open for long enough hours to cover my working hours is £45 per child per day- I’m not keen on leaving an 11 year old alone from 8am to 6pm as I think that’s too long.
I have a degree and a lot of work experience in my field it’s simply not high paying- I’ve done the sums and full time isn’t worth it while I need to pay for holiday childcare- plus full time would include weekends which makes it even harder when you have no one to have the kids.
I’m 37, I have no idea what I could re train as that would fit around the kids or whether I realistically have the time or energy to do a new course

I feel very stuck

MovingForwards

Beth, how much would 25% of a shared ownership property be around where you are living?

Potentially you would have a foot on the property ladder, housing benefit would pay the rent side of it, your IVA would carry on and you could look to staircase and buy the rest of the property as your future brightens? But, in the interim you would need to pay repairs etc on the property.

beth1611

There are no shared ownership properties within 30 miles of where I live and I’m not in a position to move any further away because of work, schools, ex husband
The new developments round here only offer help to buy which isn’t enough for me to be able to purchase a property