Declaring money coming in that's not mine

[blondebubbles]

You have to estimate to try and get the money you are entitled to and to avoid the chance of being overpaid. Everyone on tax credits must do this.

 

I would avoid saying that you are only earning a set amount to not pay national insurance. Whether you pay national insurance would not affect the claim as they take the income before deductions of tax and national insurance.

 

Okay so if your 13/14 income was £13,000 and your 14/15 income estimate is £5000 - your tax credit claim would be based on an estimate of £7500 (due to the income disregard of £2500 for decreases that I mentioned earlier).

 

Once your claim has processed you will be sent an award notice. Call at this time with your 13/14 income and estimated 14/15 income to ensure your claim is up to date from the start. You can call at any time in the year to change your 14/15 estimate if you think it will be higher or lower than £5000.

[physicsgraduate]

your tax credit claim would be based on an estimate of £7500 (due to the income disregard of £2500 for decreases that I mentioned earlier).

 

What does that mean, that I can claim 7.5K in benefits? I'm assuming not, but in any case that would be cool if it was.

[blondebubbles]

What does that mean, that I can claim 7.5K in benefits? I'm assuming not, but in any case that would be cool if it was.

 

No. That means that's the income figure they will use to calculate how much you are entitled to.

[physicsgraduate]

Which will be about £50 per week?

[blondebubbles]

Depends on the circumstances of which you are claiming e.g if you are single, if you work over 30hours, if you you are disabled and if so the severity of the disability.

[physicsgraduate]

Single, Working >30 hours and not disables. Is this going to go against me?

[blondebubbles]

Single, Working >30 hours and not disables. Is this going to go against me?

 

I'd say about £43 per week then.

 

Will what go against you?

[physicsgraduate]

Will this money that I got in 13/14 that's not my money go against. Sounds like it will if I get £43 per week, I thought I'd get about £53 per week.

[blondebubbles]

Will this money that I got in 13/14 that's not my money go against. Sounds like it will if I get £43 per week, I thought I'd get about £53 per week.

 

I have already explained how your income affects your claim. I am sorry but I am not going to post the same information again.

[physicsgraduate]

I'll just see what transpires. Thanks for the help but to be honest all this accountancy stuff makes my brain hurt. To be honest I think it would be a lot less grief just getting a job stacking shelves and being treated like a moron.

[blondebubbles]

I'll just see what transpires. Thanks for the help but to be honest all this accountancy stuff makes my brain hurt.

 

I take it you'll be getting an accountant for your self assessment tax return then? That's far more complicated than tax credits.

[physicsgraduate]

I take it you'll be getting an accountant for your self assessment tax return then? That's far more complicated than tax credits.

 

Think I might plot to overthrow the government.

 

All I want to do is live free from anyone telling me what to do all the time.

[**Margaret**]

: Physicsgraduate:

 

'...... I thought I would check here first.'

 

Sorry, there's no way we can advise non declaration of the insurance payout. At best, the situation appears misguided. The idea was for you to take over an insurance policy, taken out in your name, that you didn't know about, and had nothing to do with.

 

Employment n support allowance; '...... it's their error, I have done nothing wrong.'

 

Not yet, and as CAG doesn't condone benefit fraud, we'd advise you to keep it that way. Should you accept further payments of ESA, Jobcentreplus may consider it to be fraud if it's reasonable for you to know that you've been paid in error.

Margaret.

[*RainbowTears*]

: Physicsgraduate:

 

'...... I thought I would check here first.'

 

Sorry, there's no way we can advise non declaration of the insurance payout. At best, the situation appears misguided. The idea was for you to take over an insurance policy, taken out in your name, that you didn't know about, and had nothing to do with.

 

Employment n support allowance; '...... it's their error, I have done nothing wrong.'

 

Not yet, and as CAG doesn't condone benefit fraud, we'd advise you to keep it that way. Should you accept further payments of ESA, Jobcentreplus may consider it to be fraud if it's reasonable for you to know that you've been paid in error.

Margaret.

 

 

That's great advice from Margaret.

 

I do think you should be totally honest & declare all income that you received, instead of trying to find ways to "not declare it" as otherwise you will find yourself in a lot more serious situation.

 

Which could be classed as benefit fraud & tax evasion etc.

 

Why don't you ring the relevant authorities & explain your situation, as that way you will know exactly how you stand & how to proceed with this!

[physicsgraduate]

Excuse me, I am not trying to commit benefit fraud here or perform tax evasion! The reason I am here asking questions is so I can keep everything above board. I have explained my situation, if you don't understand it and wish to help then fine but please don't try to suggest I am attempting to do anything untoward here. The only crooks in all this are the thieving, dictatorial, fraudsters who call themselves the government!

 

I'm just a working class guy trying to keep the wolves from their door like everyone else. I have suffered some ill health recently and was just given the ATOS treatment again. I worked last year for a bit but then lost my job and spent months recovering. I thought as compromise I could maybe try working for myself from home, but so far it's just been nothing but stress.

 

You can call it what you like but as far as I am concerned if they make a mistake I owe them no courtesy so far as informing them about it is concerned. All the system has done for the past 20 years of my life is cause me problems. I have had all I can take of it, but like everyone else who doesn't own property I have to work within it as best as I can.

 

To be honest right now I think I'd just rather have nothing and be homeless and have nothing to worry about.

[physicsgraduate]

I don't know if this helps but I called the insurance company and they said something about 'surrender proceeds are tax free after ten years' and that since the policy was going for longer than 10 years it was therefore now tax free. Awaiting a call from my financial advisor which I didn't know I had. So does this mean I don't have to declare this money?

[honeybee13]

I don't know if this helps but I called the insurance company and they said something about 'surrender proceeds are tax free after ten years' and that since the policy was going for longer than 10 years it was therefore now tax free. Awaiting a call from my financial advisor which I didn't know I had. So does this mean I don't have to declare this money?

 

Hello again. I would say that's a different kind of tax. I vaguely remember a rule about insurance policies having to run at least 10 years. I don't think this will affect WTC, ESA etc.

 

HB

[physicsgraduate]

Right, there's different kinds of tax as well as some things appear to taxed and others not in an apparently random way. Do I have to declare it though?

[honeybee13]

I think the thread consensus is that you do need to declare it.

 

There's a big difference between the policy proceeds not being taxable under the life assurance regime and needing to declare the lump sum as part of your assets for benefits or WTC purposes.

 

I could post a link to HMRC on qualifying policies and chargeable gains, but as you don't like the accountancy thing I'm not sure it would be helpful to you. I think this could be what your adviser is driving at.

 

HB

[physicsgraduate]

Yeah it'd all be like Chinese to me probably. Got an accountant from one of the many companies it was sold on to over the years on the case and going to get back to advise me so I'll get this sorted out soon. Thanks for taking the time to advise me.

[physicsgraduate]

I just spoke with my accountant (didn't realise I had one) and he says I don't need to declare it because it was taken out 20 years ago and it's this and that blah blah whatever. It doesn't affect anything. So that simplifies things greatly and now I can stop stressing over money and red tape again. Thanks to all for advice. Sorry if came across as a bit narky but I'm feeling a bit ill this week, maybe got the flu or something.

[blondebubbles]

Could he maybe send this to you in writing to back you up?

 

Always good to have a written record in case you are asked in future.

[physicsgraduate]

I'm getting a letter from the bank, I thought about asking him and might call him back. He sounded like he knows what he is talking about and if he says I don't need to declare it then I think i can rely on that. In any case, there is a paper trail which leads back to the person who took it out before and after the cheque was written to me and cashed. In no way is that my money. I chose to give it back because it's not my money, I had nothing to do with it and the person who took it out needs it more than I do. It doesn't need to be any more complicated than that, because that's what it is.

[blondebubbles]

You are making it more complicated than it needs to by continuously mentioning that it's not your money

 

I am not disagreeing with you so you don't need to keep getting defensive.

 

I was providing you with advice that may help you in future. If you were asked about it in future they would take more from a written letter from your accountant than your word.

[physicsgraduate]

I know what you were doing. I get it, I'm not stupid. I just don't understand how money works, hence the fact I've never had any in my life. I've had enough, more than my share probably, but I don't value it. It's just figures. It's not real maths, and designed by people in the modern world who seem to have inherited the right to dictate how everything and everyone works through centuries of gangsterism and hegemony. It could work in principle if only people weren't so greedy and stupid, but sadly in the mortal words of Alan Sugar and his gang of celebrity of oligarchs 'I'm out'. I work for me now, not the system. I pay as little into the system as I can get away with, like every other company I do what I please to earn a living, ie. things that are a lot more important that filing paperwork or serving pints of designer lager to people in suits for 35 hour per week, and more importantly things that I enjoy and don't make me ill.