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Debt and WTC

funnymonkey
funnymonkey Posts: 260 Forumite
Part of the Furniture 100 Posts Name Dropper Combo Breaker
in Benefits & tax credits
Good afternoon.
Can anyone please help me.
I'm claiming Working Tax Credits but unsure about something.

I have 5k savings for emergencies but also have approx 5k as credit card debt on 0% card.
I'm just wondering if that would be classed as savings or would my debt offset my savings giving virtually 0 in savings?

Thank you 

Comments

  • HillStreetBlues
    HillStreetBlues Posts: 6,625 Forumite
    1,000 Posts Fourth Anniversary Homepage Hero Photogenic
    edited 18 March 2023 at 7:22PM
    In income related benefits you would be classed as having £5k in capital,  there is no off-set
    But with WTC capital is ignored so it wouldn't matter for that.
    Let's Be Careful Out There
  • born_again
    born_again Posts: 23,744 Forumite
    10,000 Posts Sixth Anniversary Name Dropper
    funnymonkey said:
    Good afternoon.
    Can anyone please help me.
    I'm claiming Working Tax Credits but unsure about something.

    I have 5k savings for emergencies but also have approx 5k as credit card debt on 0% card.
    I'm just wondering if that would be classed as savings or would my debt offset my savings giving virtually 0 in savings?

    Thank you 
    Debt is not offset against savings.

    Life in the slow lane
  • tifo
    tifo Posts: 2,175 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    HillStreetBlues said:

    But with WTC capital is ignored so it wouldn't matter for that.
    Like said, tax credits do not look at capital so it doesn't matter for those.
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