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CASH the cheque or not? What's he playing at?

(23 Posts)
momtothree Sun 21-Aug-16 11:51:02

So this is for a friend

She's on benefits 4 Kids
STBXH - was paying but moved away and stopped paying 2 years ago
She claims benefits and on occasion he's sent money her benefits stop or re adjusted - cause her more hassle

So he's now sent a cheque for £1500 in his companies name made out to cash -

If she cashes it, it will go on uniforms shoes and birthday gifts etc

But - she's worried he will claim it's for work - so her benefits will stop and she's maybe investigated for fraud -

If he'd handed her a personal cheque or cash it might be different -

But it's not been specified as a gift or maintenance or work payment - IYSWIM

What should she do? Where does she stand - declare it as a gift - accept it as maintenance or risk the work thing?

1lov3comps Sun 21-Aug-16 12:10:02

Can she email/text him confirming she's received the cheque and what she's going to use it for (and keep any rexeipts) - only so that she has it as back up if anything comes up?

momtothree Sun 21-Aug-16 12:28:57

I suggested this - but

If it was work (she hasn't) it could be spent on anything

Maintenance would be what they need plus household expenses

Gift could be what they want !

How would she prove it was a gift - but from a company? Or even maintenance rather than working?

SvartePetter Sun 21-Aug-16 12:36:05

I don't get it. Has she done any work for his company? Is he paying maintenance money from his business account and claim that it is her salary and not maintenance?

momtothree Sun 21-Aug-16 12:46:39

She doesn't work for the company
He's hasn't paid any regular maintenance for a year - just occasional money here and there - which nuggets up her benefits so she doesn't see the money so to speak and it makes budgeting hard

But he has now sent a cheque from his company - he's not said what it's for - just sent out of the blue

VimFuego101 Sun 21-Aug-16 12:49:51

What do you mean 'nuggets up her benefits'? Receiving maintenance does not impact benefits.

I would tread carefully with the cheque, he does sound like he's up to something. She could mail him a receipt confirming that she received the money and that its for CM?

momtothree Sun 21-Aug-16 12:55:02


It does - if he sends maintenance money into the bank - she gets reassessed - so her weekly amount reduces - then no money again - then he stopped paying all together

LineyReborn Sun 21-Aug-16 12:57:45

That isn't how it works, though.

momtothree Sun 21-Aug-16 12:59:10

How does it work them?

Are you saying if she claims benefits from having no income and then he gives her a lump sum it will have impact?

Surely Benidorm take into account paid maintenance? It's not extra?

momtothree Sun 21-Aug-16 12:59:49

not Benidorm

VimFuego101 Sun 21-Aug-16 13:00:08

In England, maintainance is ignored when calculating benefits, so I assume she's in a different country if that's not the case.

Afterthestorm Sun 21-Aug-16 13:00:57

What benefits does she get? I get working tax credit and child tax credit and maintenance definitely does not get taken into account for this.

VimFuego101 Sun 21-Aug-16 13:01:18

Benefits completely ignore child maintenance (as some NRPs do not pay regularly and it can be erratic). She could be getting thousands of pounds a month in maintenance and her benefits would be unaffected.

VimFuego101 Sun 21-Aug-16 13:02:09

Are you sure she's not declaring the maintenance as income (as if she'd earned it from working or something)?

Gracey79 Sun 21-Aug-16 13:02:41

Banks don't generally just hand money over for cheques made to cash anymore - we only do it where I work if the person is named on the account ie drawing their own money out

eyebrowsonfleek Sun 21-Aug-16 13:03:53

Tax Credits and Child benefit don't use maintenance in income calculations. Take a photo of the cheque and if asked by benefits, she'll be able to prove that it's from her ex so must be maintenance.

kimnews Sun 21-Aug-16 13:05:25

As above, she won't be able to cash the cheque anyway.

eyebrowsonfleek Sun 21-Aug-16 13:07:21

She could have £1000 a week paid into her account from her ex and be entitled to Tax Credits and Child Benefit (assuming not job, pension...) . I think there is a savings threshold (there may must be less than £6k in her account and in her children's)

Afterthestorm Sun 21-Aug-16 13:09:55

There used to be a savings threshold but now you have to put the income earned from the savings instead, so she would only be losing her benefits if she had a lot of savings - and therefore wouldn't need the benefits anyway.

LineyReborn Sun 21-Aug-16 13:12:52

She's not asked you to bank the cheque for her, has she, OP?

QuiteLikely5 Sun 21-Aug-16 13:13:12

I am really struggling to believe your friend had her benefits stopped because she was paid maintenance, even if it was from a business account.

Lunar1 Sun 21-Aug-16 13:14:10

I wouldn't bank a company cheque, it would look like wages. She needs to apply for maintenance.

YouMakeMyDreams Sun 21-Aug-16 13:14:22

Even on income support her benefits would not be affected from a maintenance payment.
It used to be but the income support part is calculated for the adult claiming it no longer has a child portion. That comes from child tax credits now which are paid for the children.
Maintenance payments affect neither of these. She is either telling you an untruth or she has declared the the payments as income which would affect her payments.

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