Once hit £6000 saving

SirSteven1986

Can anyone clear up what actually happens and what’s needed to do once hit £6000 savings, basically since started on universal credit working part time aswell as some self employment all declared on system I’ve been saving up bits n bats to buy a little buisness or maybe put down on a small mortgage if could get accepted anywhere, my payments now aren’t much from universal credit so was just wondering if its worth the hassle carrying on once hit £6000 or if its reasonably straight forward?

HillStreetBlues

SirSteven1986 said:

Can anyone clear up what actually happens and what’s needed to do once hit £6000 savings, basically since started on universal credit working part time aswell as some self employment all declared on system I’ve been saving up bits n bats to buy a little buisness or maybe put down on a small mortgage if could get accepted anywhere, my payments now aren’t much from universal credit so was just wondering if its worth the hassle carrying on once hit £6000 or if its reasonably straight forward?

It easy to report capital via your online account
Take account that your earning will be income paid in your AP,  so not capital.
For example if you have £5k in monies and your income is £1000 during your AP  your capital will be £4k

SirSteven1986

It’s quite confusing and now all these reviews going around seems bit much for sake of £100,£200  was thinking of getting a loan to buy a van for £3000 but had no idea if I’d have to report I got this loan as would take me over but then wen bought van immediately back under🤷‍♂️ 

HillStreetBlues

SirSteven1986 said:

It’s quite confusing and now all these reviews going around seems bit much for sake of £100,£200  was thinking of getting a loan to buy a van for £3000 but had no idea if I’d have to report I got this loan as would take me over but then wen bought van immediately back under🤷‍♂️ 

What matters is the capital at the end of your AP, if you take loan out and buy van during your AP then no need to report if capital below £6k

SirSteven1986

Also if I get to £6000 in my savings but my current account is say -1100 into an overdraft would my capital be 4900?

HillStreetBlues

SirSteven1986 said:

Also if I get to £6000 in my savings but my current account is say -1100 into an overdraft would my capital be 4900?

No, a debt doesn't contact a credit, you would still be classed as having £6k

Yamor

Unless the savings account and current account are with the same bank and the terms and conditions of the current account allow the bank to pay off the overdraft out of your savings account if they would want to.

peteuk

SirSteven1986 said:

Can anyone clear up what actually happens and what’s needed to do once hit £6000 savings, basically since started on universal credit working part time aswell as some self employment all declared on system I’ve been saving up bits n bats to buy a little buisness or maybe put down on a small mortgage if could get accepted anywhere, my payments now aren’t much from universal credit so was just wondering if its worth the hassle carrying on once hit £6000 or if its reasonably straight forward?

As for the what happens - once you are over £6K your UC is reduced by £4.35 for each £250 or part of there in.  SO £6,001 reduced your UC by £4.35,  £6251 reduced is by £8.70.

SirSteven1986

So its just something added onto the journal I’ve never seen it? Will keep eye out. Was confused reading people bank statements being checked to see if they had 6000£! Still bit off that yet anyway and never know what’s round corner 

jadex

SirSteven1986 said:

So its just something added onto the journal I’ve never seen it?

No, it's not in journal,
it is under Home tab then "Report a change" then "Money, savings and investments"

SirSteven1986

Do universal credit mind you trying to save bit of something up while on the system? Like I’ve posted they hardly put anything towards it now. Basically my self employment is window cleaning but had to take up a part time job aswell to make ends meet. But also been saving so can buy some more window work and quit employment which don’t enjoy as much.