Tax Credits Please Help

Hennie_2

Receiving tax credits and need to know if I need to declare a small inheritance that I have had. Have been told different things by tax credit helpline and phoned the citizens advice tax credit line last year who told me I didn't need to. After reading the notes in the renewal pack it mentions trust income (deceased persons estate). Now unsure if I have been given the correct information. I have put the money in premiums bonds so not getting any interest but if anyone currently working for tax credits could let me know I would be very grateful.

jay1jay

You don't need to declare savings at all - only interest earned on them, and then only if you have over £300 a year "other income". No need to declare your inheritance.

Hennie_2

Thanks for that but do you know what it is referring to in the guidance notes under trust income (deceased persons estate) is that something else other than inheritance.

robwend

you do need to declare the money. if you are recieving workin tax. i called them today about this as im soon to get 50k from house sale.i tell you my situ then you will get a idea of your own.
work partime =5400 p year
tax bracket 6400 p year
equity 50k
anything earnt as intrest above my tax bracket of 6400 per year is taken into account, they take 40p off every pound above that amount.so if i put my money in a crappy account with crappy intrest rate i shouldnt go over my tax alowance thus not loosing a penny, call them and they will explain it all BUT THEY WONT TOUCH THE MONEY ITSELF, JUST THE INTREST if you within your bracket

woozywendy

robwend wrote: »

you do need to declare the money. if you are recieving workin tax. i called them today about this as im soon to get 50k from house sale.i tell you my situ then you will get a idea of your own.
work partime =5400 p year
tax bracket 6400 p year
equity 50k
anything earnt as intrest above my tax bracket of 6400 per year is taken into account, they take 40p off every pound above that amount.so if i put my money in a crappy account with crappy intrest rate i shouldnt go over my tax alowance thus not loosing a penny, call them and they will explain it all BUT THEY WONT TOUCH THE MONEY ITSELF, JUST THE INTREST if you within your bracket

If you were to spend the money more or less straight away paying off the mortgage/loans for example would you still have to tell them?

jay1jay

Trust income is income from a trust that was set up for you by someone to be paid to you after their death. Its different from a bog standard inheritance. As I said above - you don't need to declare your inheritance. However, if you were to put the money into a bank account, and the interest you earned from that money, together with any other income you have that falls into the 'other income' category (not wages, benefits etc) comes to over £300, you will need to declare the interest (less the £300 disregard).

jay1jay

You've said that you've put the inheritance into premium bonds - no need to declare premium bonds.

Hennie_2

Thanks Jay1Jay for the explanation. Is that correct if I get working tax and child care element, only the previous post seemed to think it might make a difference.

[Deleted User]

Jay is correct, it doesnt matter what Tax Credits you get - WTC and/or CTC.
You only need to declare the interest you will earn on the inheritance.

HappyDuck_2

please read the guidance book which comes with your renewal carefully before deciding what income to declare.

The section on the hmrc site from the renewals booklet http://www.hmrc.gov.uk/forms/tc603rd-notes.pdf pg 32 & http://www.hmrc.gov.uk/forms/tc600-notes.pdf pg 25 from the application notes both clearly state Income from trusts, settlements and estates above £300 needs to be included,

"If you received income from a trust, settlement or a deceased
person's estate, the trustees or administrators will have given you
a certificate telling you what income was paid to you. Include the

gross income (that is, the amount before any tax was taken off)."