Query about Income Support and Savings

[skylight]

I would rather post here than elsewhere...

Anyway - I have been claiming IS for a year now. There is myself and 5 kids (4 under 8 and 1 is 16yo). Before the separation (and before the IS claim), there were funds in an account I was joint-trustee of for step-daughter. To prevent the money being spent by someone else it was agreed that the money would be split between SD and my DD (then 15) - for tax reasons (as in the 15yo wouldn't have to pay tax on interest) There was £5k in DDs name.

Then I claimed IS.

Last April, the 16yo was given £4k as a present from Granddad. So in total the DD who is 16 has in her sole name £8.5k - she only knows of the money Granddad gave her. I have no access at all to these funds. I did call DWP and told them of the money from Granddad and was told that it wouldn't affect my claim but to notify them in writing - which I did.

Anyway. My question is - is this right? I do not have savings over £1k in my personal name or money that I have access to. My DD is 16yo and is legally allowed to have whatever she likes (Bond and ISA here) and I have no rights at all to that money; it was not and is not mine.

I ask now, as I have had a compliance letter arrive and have been wracking my brains trying to think of why I have had a letter (No partner. not working on the side etc) and now I am a little worried about this money of DD's.

Does anyone know? I have googled and answers are a bit hit and miss. But from what I can make out, I am in the right. (It would be different if there were £8k in an account of one of my childrens that I was a signatory for and had full access to)

[jen_br]

Re: Query about Income Support and Savings

Hi this money is in your childs name and should not be held against you... is the account that was joint in your name and SD name still active?

[LooLoo]

Re: Query about Income Support and Savings

Hi Skylight

Sorry I can't help you but I know the good advice you have given elsewhere and I am sure you will get (and have already) the help you need here.

LL
x

[skylight]

Re: Query about Income Support and Savings

The account for SD, was held in trust for her with the EX and I as trustees. It has £100 left in it and is still open. Would it be a good idea to close it? The money in my daughters account is in her name only and only accessible by her.

Thanks for your help!

[jen_br]

Re: Query about Income Support and Savings

100.00 makes no odds, this money in your kids account shouldn't matter, I remember when I was on ESA, I was asked for savings as im selfemployed and my kid *who was only 16 months at the time* had a savings account of just over 3k....

I asked them if that mattered and they said no its his account not mine.

Therefore you could have gotten one of the generic run of the mill letters ... Have you tried calling them?

[skylight]

Re: Query about Income Support and Savings

I got the letter Christmas Eve and left a message that morning - no-one has answered the phone since. I will try again on Tuesday as I need to change the appointment time anyway (they have given me an appointment close to school run time and in the next town!)

Thanks for the reassurrance. I was sure that was right anyway, but you do question yourself when you actually get these things! I am not claiming incorrectly at all. I think that its either I have been reported for something nosensical (the neighbour here has been trouble since I moved in 14yrs ago) or something is wrong with the claim; due to fraud I have had my CTC and my CB stopped on different occasions in the last year so it would't surprise me if this is connected..

Ho hum. Will wait until next week.

Ta very much
x

[Angelic]

Re: Query about Income Support and Savings

What was the outcome Skylight?

[di30]

Re: Query about Income Support and Savings

More details on the link below in regards of Income support/savings etc.

http://www.direct.gov.uk/en/MoneyTax...me/DG_10018708

[5corpio]

Re: Query about Income Support and Savings

15,000 more families to lose child benefit

Over 15,000 more families with a single income will be dragged into the higher-rate tax band by April next year.

Justine Greening, a Treasury minister, admitted in a parliamentary written answer that the number of single-income families with children who pay higher-rate tax would increase by nearly 9pc by April 2012, to 190,000. She said she could not estimate how much further this number would rise in 2013.

However, earlier parliamentary answers have suggested that 200,000 single-income households will be liable for the higher rate of tax by 2013, when the changes to child benefit take effect.

These households, which include those where either the mother or father has stayed at home to look after the children as well as single-parent families, will pay 40pc tax on some of their income, and will also lose their....Read More 'Telegraph'

Child benefit: Q&A

Q. What is child benefit?

A. Child benefit is currently paid to all families in Britain, regardless of income or lifestyle. The amount paid remains the same no matter what you earn - £20.30 a week for your oldest child, and £13.40 for each other child. This translates into roughly a £1,000 a year for your eldest child and £700 for each sibling. This money is usually paid directly into the mother’s bank account on a monthly basis. You can claim if your child is under 16, your child is over 16 and in education or training or your child is 16 or 17 and is regist-ered for work. It stops at 18.

Q.What is changing?

A. The Government has said that from 2013, only those families where no-one pays higher rate tax will be eligible for the benefit.

More Q & A From Telegraph....

How to avoid higher-rate tax and keep your child benefit

If you are worried that you will be dragged into the higher-rate tax band, and thus lose out on child benefit, there are some things you can do to bring down your tax liability if you are near the threshold.

For example, you could use a tax-efficient salary sacrifice scheme to bring down your total liability, leaving you below the threshold.
Childcare vouchers are an excellent example of this. If your employer participates in a scheme, you can buy these vouchers to pay for your childcare out of your pre-tax income, reducing your tax liability. You can buy nearly £3,000 a year of vouchers, which could be enough to pull you out of the higher-rate tax band.

The vouchers can be used not just for ....Read More

[5corpio]

Re: Query about Income Support and Savings

Intrigue if one got paid?

If someone had redundancy insurance/sickness, and were made redundant, can they still get Job Seekers allowance ie 'Sign On' - due to that they will be getting money as other source of income.


* Someone who has redundacy insurance, which pays them 50% p/mth of their monthly wage up to Maximum of 12 mths
example: £1000 p/mth = gives them £500 p/mth

* Can that person still go to the DWP to register? claim job seekers allowance as they have been made redundant in their job

* AND STILL GET THERE FULL Job Seekers allowance as well as there redundancy insurance - OR would they be penalised as its MORE THAN the job seekers allowance in any given one month?

Just an intrigue theory (that person wouldn't have savings, as i know that they dont get job seekers if they had).

As IF you can't claim, then its not WORTH insuring for Redundancy - as it doesn't cover your Private Rent, Heating, Water, Gas, Electric, Council Tax etc, UNLESS you paid HIGH premium redundancy insurance that pays MORE than £1,000 every month......Anyone thought of this