help - seperation

Spendless

I wonder if someone could answer this- if instead of the £100 snow-queens father is giving her - if he helped her out by say buying a £100 worth of groceries instead , would she need to declare that ???

Fran

Spendless - Any one off gift is clearly different to a regular, weekly income.

Snow_queen,

I would suggest that you visit the CAB again with a list of all the things that are bothering you and you need to know the answer to. They can tell you about the "if's" etc. and help advice you with the best legal option.

Inform Tax Credits about the £100 per week income. You will also have to inform Council Tax about it.

I'm very pleased that you have got some money coming in just after christmas.

You can now try to enjoy yourself over xmas.

snow_queen

Thanks Fran, but what if im not entitled now or have to pay it all back? Last time I went to CAB they were about as helpful as a chocolate teacup, so Im really reluctant to go back

snow_queen

just went onto the tax credits site to see when I applied if I had to declare it and this is what it says for "other income" they need to be told about

The different types of ‘other income’ that are taken into account are:

Interest on savings and investments,

Income from shares and other holdings,

Trusts and settlements,

Income from estates of deceased persons,

Foreign income,

Industrial Death Benefit,

Widow's Pension,

Widowed Mother's Allowance, Widowed Parent's Allowance,

Income from property,

Income from pensions,

Student Grants for adult dependants (other than those which help to meet child care costs and for books, travel and equipment).

so does this mean Im ok?

Fran

I've just been onto Inland Revenue site too and it says:-

"If your household has other forms of income, such as income from rents, this will only be taken in to account where it exceeds a certain level."

Basically you have to declare it. If you're under the limit then it won't affect your award anyway; if you're over it, then it will.

In what way were CAB not helpful? What questions did you ask them and how did they answer? They are useful because they can look at your situation overall, but there are other Welfare Benefits advisers. CAB can tell you local ones and Ted has put a link re this on several threads (try "useful links" at the top of this board).

Fran

Thanks Fran, but what if im not entitled now or have to pay it all back?

That is why I suggest asking CAB to calculate the correct amount for you - declaring all your income. They can tell you how to deal with it.

irs101

Having thought about this overnight, I'm really not sure snow_queen has to tell IR at all. If this is a regular gift from her dad's income then it falls outside inheritance tax.

Furthermore the income has already been taxed in her dad's hands, so snow_queen certainly won't need to pay income tax on it. This is important, because the income rules for tax credits mirror the income tax rules in most instances.

In fact, Statutory Instrument 2002 No. 2006
The Tax Credits (Definition and Calculation of Income) Regulations 2002 defines what counts as income for tax credits. https://www.hmso.gov.uk/si/si2002/20022006.htm

Regulation 3 lists what counts as income (virtually the list the snow_queen quoted above). It doesn't say anything about gifts. So the only thing gifts could fall under is "miscellaneous income" as defined in reg 18. This says "In these Regulations "miscellaneous income" means income which does not fall within any other provision of these Regulations and which is subject to income tax under Case VI of Schedule D." I haven't look at Schedule D, but I'm sure income tax isn't due on the gift from snow_queen's dad, so it doesn't count for tax credits either.

Obviously to be sure contact IR, and tell them that you are receiving a regular gift from a parent - does that count as income? But you have time to get to the right answer because you aren't under any obligation to tell them about changes in income before next September.

irs

snow_queen

Hello! Me again!

Firstly, I would like to thank each and every one of you for the advice you have given me through what Ive found a complete minefield and a very difficult time. I couldnt have done it without you and you have been my rocks.

I have just rung the tax credits line (twice and spoke to different people to be sure!) and they have advised i do NOT need to declare it as its a "gift" and not "working" or "taxable" income.

I hope you all have a lovely Christmas and New Year and I look forward to being able to help other people in my position on here, with what I have learnt from you guys!

Thank you again xxxx

ps and sorry Fran for breaking the psoting rules by mulit posting :-[

jellyhead

glad you've got it sorted out, have a good christmas :-)

Fran

Hello! Me again!


ps and sorry Fran for breaking the psoting rules by mulit posting :-[

snow_queen, you haven't broken any rules as you are free to start any thread as anyone is, it's just easier to give answers if the questions (as yours were related) are on the same thread.

Glad you got that sorted out!