Tax Credit Query

saraR_3

To apply for tax credits do your savings / assets need to be under a certain amount?
Do you have to provide bank statements or just proof of income (wage slips?)
I know for council tax benefit savings are taken into account. If I were to use my savings to pay off part of my mortgage could I be better off? Or are assets also taken into account?
Thanks

sjaypink

saraR wrote: »

To apply for tax credits do your savings / assets need to be under a certain amount?
Do you have to provide bank statements or just proof of income (wage slips?)
I know for council tax benefit savings are taken into account. If I were to use my savings to pay off part of my mortgage could I be better off? Or are assets also taken into account?
Thanks

no you dont have to show bank statements or wage slips.......
just tell them what your income is...................

*which has just got me thinking i wonder how many people lie... do they ever actually check?*

i cant remember what amount of savings is allowed before its counted..........
not one of my regular answers as i dont have any

as i dont have a mortgage i dont know that either? but i dont remember seeing anything like that on the form......... i wouldnt have thought it counted........ unless it was a huge amount of capital......

sorry cant be more help, others will def know, but if you dont want to wait go on their website, should tell you there

ukric

No, they look at your income not your assets, however nice they may be

savings income would be classed as other income, anything over £300 per year will be taken into account.

[Deleted User]

UKric is correct, they do not take in to account your savings or assets.

They will class interest from savings as income though.

They will not usually ask for proof of income but you may be chosen for a compliance check either at the application stage or at any point during the time you claim tax credits.

So yes they will carry out a random check on applicants to make sure they are declaring the correct income and will require you to provide proof/evidence of the amounts.