Benefits and inheritance

lyn92nol

Afternoon, 
Does anyone have experience with benefits and inheritance?

Currently as a single mother I receive income support, child benefit and child tax credit. (1year old and 5year old) currently live with my mum so don’t claim for housing or anything. 

Im due to receive approx £30k from an inheritance due to my dad and Nan recently passing away. (No clue when I will actually receive it) - I know that once it’s been received I will no longer be able to claim income support. 

But not 100% sure what will happen with the child tax credit and child benefit. From what I have read and my understanding neither will be affected as it isn’t a annual income and I don’t pay tax on it… I tried ringing HMRC to confirm this but can’t get through to a human being to check. 

I obviously try ringing again but wondered whether anyone could shed any light on this? 

Thanks!

diystarter7

They do get affected and it's not the tax people you should be telling it's the benefits departments.
You must be aware of the saving limits and how benefits are affected once you have over an x amount
as you are advised of your obligations when claiming benefits.

If I was you, call them and ask about it and they'll make a record of your call and then tell them again once you get the money. but I'm pretty sure your benefits won't be affected until the money is legally yours.

poppy12345

diystarter7 said:

They do get affected and it's not the tax people you should be telling it's the benefits departments.

OP clearly said they know their Income Support will be affected.

 I know that once it’s been received I will no longer be able to claim income support. 

What they asked was if their tax credits and child benefit will be affected. Which is why they mentioned that they tried ringing HMRC because these are the ones the administer child tax credits and child benefit.

lyn92nol said:

But not 100% sure what will happen with the child tax credit and child benefit. From what I have read and my understanding neither will be affected as it isn’t a annual income and I don’t pay tax on it… I tried ringing HMRC to confirm this but can’t get through to a human being to check. 

OP you are correct. Savings/capital do not affect tax credits unless the interest on it is more than £300.

calcotti

You should note however that Tax Credits are due to end for everyone by the end of 2024 (whether or not this is actually achievable remains to be seen). When you are told that Tax Credits are ending you will be invited to claim Universal Credit. You are normally excluded from UC if you have capital over £16,000. There will be a one year exemption from the capital rules for those transferring from Tax Credits but, after that, if you still have more than £16,000 the UC will end.

lyn92nol

poppy12345 said:

diystarter7 said:

They do get affected and it's not the tax people you should be telling it's the benefits departments.

OP clearly said they know their Income Support will be affected.

 I know that once it’s been received I will no longer be able to claim income support. 

What they asked was if their tax credits and child benefit will be affected. Which is why they mentioned that they tried ringing HMRC because these are the ones the administer child tax credits and child benefit.

lyn92nol said:

But not 100% sure what will happen with the child tax credit and child benefit. From what I have read and my understanding neither will be affected as it isn’t a annual income and I don’t pay tax on it… I tried ringing HMRC to confirm this but can’t get through to a human being to check. 

OP you are correct. Savings/capital do not affect tax credits unless the interest on it is more than £300.

Thank you for replies. I just wanted to make sure what I was understanding was correct. Obviously I will contact the benefit department soon as I know a date for the payment or know anything else. 

Just finding it difficult to speak to an actual person after hours on hold. 

Would I still need to tell HMRC about the payment?

poppy12345

lyn92nol said:

poppy12345 said:

diystarter7 said:

They do get affected and it's not the tax people you should be telling it's the benefits departments.

OP clearly said they know their Income Support will be affected.

 I know that once it’s been received I will no longer be able to claim income support. 

What they asked was if their tax credits and child benefit will be affected. Which is why they mentioned that they tried ringing HMRC because these are the ones the administer child tax credits and child benefit.

lyn92nol said:

But not 100% sure what will happen with the child tax credit and child benefit. From what I have read and my understanding neither will be affected as it isn’t a annual income and I don’t pay tax on it… I tried ringing HMRC to confirm this but can’t get through to a human being to check. 

OP you are correct. Savings/capital do not affect tax credits unless the interest on it is more than £300.

Thank you for replies. I just wanted to make sure what I was understanding was correct. Obviously I will contact the benefit department soon as I know a date for the payment or know anything else. 

Just finding it difficult to speak to an actual person after hours on hold. 

Would I still need to tell HMRC about the payment?

You don't need to do anything until the money goes into your bank. Then you need to ring Income Support. You don't need to ring HMRC because savings don't affect it.

diystarter7

lyn92nol said:

poppy12345 said:

diystarter7 said:

They do get affected and it's not the tax people you should be telling it's the benefits departments.

OP clearly said they know their Income Support will be affected.

 I know that once it’s been received I will no longer be able to claim income support. 

What they asked was if their tax credits and child benefit will be affected. Which is why they mentioned that they tried ringing HMRC because these are the ones the administer child tax credits and child benefit.

lyn92nol said:

But not 100% sure what will happen with the child tax credit and child benefit. From what I have read and my understanding neither will be affected as it isn’t a annual income and I don’t pay tax on it… I tried ringing HMRC to confirm this but can’t get through to a human being to check. 

OP you are correct. Savings/capital do not affect tax credits unless the interest on it is more than £300.

Thank you for replies. I just wanted to make sure what I was understanding was correct. Obviously I will contact the benefit department soon as I know a date for the payment or know anything else. 

Just finding it difficult to speak to an actual person after hours on hold. 

Would I still need to tell HMRC about the payment?

HMRC, not ATM. However, if you get interest over the tax-free about which I think i one thousand pounds PA then you will. 
However, abt about 1 to 1.7 best interest rates ATM, you won't

Good luck with your new money when you eventually get it and credit to you for trying to do the right thing.