Tax credit renewal - general questions (merged)

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oh_muggy
oh_muggy Posts: 35 Forumite
in Benefits & tax credits
I'm sure I heard somewhere that in the coming year tax credits would take savings into account and if you had more than £16000 you wouldn't be able to claim them. Does anyone know if this is true?
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  • quintwins
    quintwins Posts: 5,179 Forumite
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    i acually did a thread like this ages ago and was told that once you have £6000 they take the interest into account, and once you have £16,000 u can't claim at all (which seems fair as thats more than most people earn) i'm not sure if thats due to change tho
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  • claire111
    claire111 Posts: 285 Forumite
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    oh_muggy wrote: »
    I'm sure I heard somewhere that in the coming year tax credits would take savings into account and if you had more than £16000 you wouldn't be able to claim them. Does anyone know if this is true?


    Currently you are not disqualified from claiming tax credits because of savings but it is planned that when the new 'Universal credit' is introduced that those will be the new rules.

    http://www.dwp.gov.uk/policy/welfare-reform/legislation-and-key-documents/universal-credit/

    Sometime 2013 - 2017........lol
  • oh_muggy
    oh_muggy Posts: 35 Forumite
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    Thank goodness for that. We've saved every penny we could to get the house adapted for me and hope to get everything started at the end of this month.
  • Indie_Kid
    Indie_Kid Posts: 23,077 Forumite
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    It's currently taxable interest (so no ISAs) over £300 PA.
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  • thor
    thor Posts: 5,483 Forumite
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    claire111 wrote: »
    Currently you are not disqualified from claiming tax credits because of savings but it is planned that when the new 'Universal credit' is introduced that those will be the new rules.

    http://www.dwp.gov.uk/policy/welfare-reform/legislation-and-key-documents/universal-credit/

    Sometime 2013 - 2017........lol
    which directly contradicts Ian Duncan Smith's promise that no one claiming benefits now will be worse off under the Universal Credits.
    I have a feeling when people begin to realise the implications, there will be an almighty stink.
  • Indie_Kid
    Indie_Kid Posts: 23,077 Forumite
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    quintwins wrote: »
    i acually did a thread like this ages ago and was told that once you have £6000 they take the interest into account, and once you have £16,000 u can't claim at all (which seems fair as thats more than most people earn) i'm not sure if thats due to change tho

    It's the taxable interest and not the capital they're currently interested in.
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  • claire111
    claire111 Posts: 285 Forumite
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    thor wrote: »
    which directly contradicts Ian Duncan Smith's promise that no one claiming benefits now will be worse off under the Universal Credits.
    I have a feeling when people begin to realise the implications, there will be an almighty stink.


    Ahhhhh, now then, what I understand that this means is that when they move you on to the new system there will be a 'cash top up' if you are going to be worse off......

    How long you will receive this for will be in the small print that they haven't released yet and the top up won't be available to new claimants.
  • Sixer
    Sixer Posts: 1,087 Forumite
    edited 22 January 2011 at 10:37AM
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    thor wrote: »
    which directly contradicts Ian Duncan Smith's promise that no one claiming benefits now will be worse off under the Universal Credits.
    I have a feeling when people begin to realise the implications, there will be an almighty stink.

    I think you are right there. The CB stink was big enough. The 40% tax threshold is also coming down by £2,400 in 2011-12. Over the course of this one parliament, there will be several whammies on a particular - often Tory-voting - demographic.

    No CB if there is one higher rate taxpayer in the house.
    Basically no CTC family element if family income goes above £40k then £30k.
    Lots more 40%ers when the threshold goes from £37.4k to £35k.
    No CTC for the lowish paid but thrifty savers.

    I wonder if any of their boffins have actually sat down and really understood all this? A benefits system can only really work if there is 'general' consent for it. There's so much fury now about perceived scroungers and cheats, and I see some form of universality within the system as necessary for the general consent needed to keep it going. Things will get even nastier than they are now. Opinions even more polarised. Rocky road ahead!
  • 5823yil
    5823yil Posts: 111 Forumite
    edited 5 May 2011 at 9:11PM
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    Hi have just renewed my Tax Credit over the phone tonight. I had some changes which I reported.

    I was told that I had renewed and not to call the number again and the paperwork will follow by 16th June once checked. I may get a one off payment and then amended payments.

    They never asked me about 2011 - 2012 income is this because it is regarding last years declaration.

    Has anybody had this? Normally it only takes 10 days or so? Or is this due to the time of the year?

    I really dont want to receive to much and potentially it could be another 4 weeks of incorrect payments.

    Anybody else had the same experience recently?
  • System
    System Posts: 178,094 Community Admin
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    Your 2011/2012 payments will be based on the 2010/2011 income you declared over the phone today.
    You only need to give them an estimate of your 2011/2012 income if you think it will be more than £10K above what you declared today or if you think it will be significantly less.
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