does 10k inheritance effect your tax credits

[christinedredge]

does 10k savings effect claiming tax credits

[hc4361]

Yes. You are allowed savings up to £16000 before you are denied any benefits but your benefits will be affected by any savings you have.

[themas]

Both the above answers are wrong - they are confusing DWP benefits (where there is a limit on the amount of savings) with tax credits, where there is not.

You do not have to declare savings to the Tax Credit Office. What happens is that if the interest or dividend you get from investing the savings exceeds £300 per year it is taken into account & reduces the amount of your tax credits. Notifying this is part of the annual declaration process - you are asked on the form to provide the interest/dividend figure if applicable.

[tali1]

Keep it simple and save in an ISA - savings of up to 10K there are disregarded

[sara3]

tali1, for benefit purposes? I think not!

[tali1]

FAO sara3
"I was informed by the inland revenue that because ISAs do not have to be declared on your tax return, both the savings and the i nterest are disregarded when calculating child tax credit and working tax credit, as these allowances are calculated on your taxable income only.
The same goes for any other savings that are not subject to tax and don't have to be declared, such as some NS&I accounts.
ISAs have to be declared for all other means tested benefits. "