Savings

Danithomas

Hi i was just enquiring as i am currently living in my owned/mortgaged house and me and my husband have separated and he is now buying me out of the house to which i will receive £25,000.

I am self employed and recieved child tax credits and working tax credits. Once i have received this lump sum as i cannot afford to buy a house at this very moment in time i will be moving into rented but would like to keep my £25,000 in a savings account to hopefully buy somewhere in the next couple of yrs. So will all my tax credits stop if i have this money or can i still claim?

Many thanks

Danielle thomas

poppy12345

Danithomas wrote: »

Hi i was just enquiring as i am currently living in my owned/mortgaged house and me and my husband have separated and he is now buying me out of the house to which i will receive £25,000.

I am self employed and recieved child tax credits and working tax credits. Once i have received this lump sum as i cannot afford to buy a house at this very moment in time i will be moving into rented but would like to keep my £25,000 in a savings account to hopefully buy somewhere in the next couple of yrs. So will all my tax credits stop if i have this money or can i still claim?

Many thanks

Danielle thomas

Have you contacted HMRC to report the changes? When you were living with your partner you were claiming tax credits as a couple, now you're single you should have reported those changes, did you report those changes? If you didn't then you need to ASAP, once you do this your tax credits will then end and you won't be able to make a new claim as a single person because all areas are now a full universal credit area. You'll have to claim UC. You'll most likely have an overpayment of tax credits which will need to be repaid back.



When you receive the money in your bank you will need to report those changes to DWP and your UC will stop because you'll have savings of more than £16,000. UC is means tested benefit and savings affect the amount you can claim.

Danithomas

I am living in the house on my own with the children as he moved out a while ago so all changes are up to date. What is DWP?? Also i dont get universal credit as am i right in thinking that is different to tax credits??

poppy12345

Danithomas wrote: »

I am living in the house on my own with the children as he moved out a while ago so all changes are up to date. What is DWP?? Also i dont get universal credit as am i right in thinking that is different to tax credits??

You're claiming tax credits as a single person? If so then your savings won't affect your tax credits, unless you have interest over £300 which isn't likely.



If you're claiming as a single person then you won't need to claim UC and my advice above doesn't apply.


Do be aware that if you rent in the future then you won't be able to claim for help with the rent because of the amount of savings you'll have.

calcotti

As poppy has indicated it is essential that you are clear about whether your tax credits claim is for you as a single person or whether it is still a claim based on you and your former husband as a couple. Provided HMRC were informed when he moved out and your claim is as a single person you are fine.

(DWP is Department of Work and Pensions who deal will all benefits other than Tax Credits and Child Benefit.)