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savings/capital above threshold

sanova76
sanova76 Posts: 287 Forumite
Part of the Furniture 100 Posts Combo Breaker
in Benefits & tax credits
Hi,


Need help to clarify something please. Due to relationship breakdown I'll be claiming tax credit as a single person. I have a 9 year old boy. When I use the HMRC website calculator it doesn't ask for the amount of savings you have and the result shows I may be entitled for x amount. I was told the savings part is income from the savings (interest). I have ISA.

When I used entitledto/turn2us, they ask for savings and gave different result which says I'm not entitled because my earning + savings is above the threshold. I'm a bit worried because I won't be able to afford the bills without the tax credit.

Please advise.

Many thanks.

San

Comments

  • Ames
    Ames Posts: 18,459 Forumite
    For tax credits savings don't count, only interest which is above £300 per year.

    I assume that having done the calculators they said you're able to claim tax credits and therefore aren't living in a Universal Credit area. Under that, savings are counted.
    Unless I say otherwise 'you' means the general you not you specifically.
  • sanova76
    sanova76 Posts: 287 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I'm living in the Universal Credit area but receive tax credit at the moment. I'm not claiming housing benefit or income support. I checked in a website that my area is not a full service area but everybody should be transferred to universal credit in 2019.

    So the calculator it's accurate then? I won't be getting anything because of my savings if I'm in a full service area?
  • calcotti
    calcotti Posts: 15,696 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    When you say you are getting tax credits do you mean that you have been receiving tax credits as part of a couple. If so and you have now separated you would have to make a new single person claim for tax credits and you are not allowed to do this in a UC area. You would therefore have to claim UC but will not be able to while you have capital above £16,000.
    Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.
  • sanova76
    sanova76 Posts: 287 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    yes, I've been receiving tax credits as part of a couple. So in reality, I'll be worse off as a single person once I switch to universal credit :(
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    You will still be able to afford your bills, you have your savings.
  • poppy12345
    poppy12345 Posts: 18,917 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    If you're no longer a couple then you need to report those changes to HMRC as all changes must be reported. Check your area here. http://ucpostcode.entitledto.co.uk/ucdate If it's not a full UC area then you can tax credits as a single person.


    When people do start moving across to UC as part of managed migration in 2019, a lot later for a lot of people. There will be a transitional protection in place so you won't be worse off.
  • sanova76
    sanova76 Posts: 287 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    We're in the process of divorcing, we're still living together as a couple.

    I've checked my postcode, I'm in the UC area.

    If I use my savings to pay the bills obviously my capital will decrease then I can make a new claim?
  • marliepanda
    marliepanda Posts: 7,186 Forumite
    sanova76 wrote: »
    We're in the process of divorcing, we're still living together as a couple.

    I've checked my postcode, I'm in the UC area.

    If I use my savings to pay the bills obviously my capital will decrease then I can make a new claim?

    Yup, once you are under 16k your means tested benefits will taper back in until you are under 6k
  • konark
    konark Posts: 1,260 Forumite
    sanova76 wrote: »
    . I checked in a website that my area is not a full service area but everybody should be transferred to universal credit in 2019.

    So the calculator it's accurate then? I won't be getting anything because of my savings if I'm in a full service area?


    You don't seem to be sure whether you are in a' Full Service' area or not



    If you are not you soon will be, as long as you live as a couple your joint Tax Credits claim can continue, but when your husband moves out you will probably have to claim UC. .
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