savings

sharon_burgess

hi was wondering if you can help me, i will be starting p/t work next week and will be claiming working tax credit an child tax credit and was wondering how much savings i am allowed to have in my bank before it effects my working credits,

thanks sharon

healy

With tax credits it is not the level of savings that are taken into consideration but the interest on the savings each year. You need to declare interest of over £300 per year to Tax Credits.

sharon_burgess

Thank you Healy,how much money roughly would you need to have in your bank account to declare intrest over £300 if you know what i mean

thanks

healy

That would depend on the interest rates that you were receiving on any accounts that you have which can vary widely.

chrisbur

healy wrote: »

With tax credits it is not the level of savings that are taken into consideration but the interest on the savings each year. You need to declare interest of over £300 per year to Tax Credits.

Also if any of your savings are in ISAs then they are ignored for tax credit purposes and do not have to be declared.

Genny_2

Hi Sharon,

This website has a handy savings calculator which can work out interest for you.

For example, A basic rate tax payer with savings of £7000, getting 5% interest for one year, will have a total of £7280.00 savings.

Therefore, £280.00 interest. You could enter your own figures and check if it will exceed £300.

Genny