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Original poster

If you had a spare/surprise £500...

150 replies

Ffsffsffsffsffs · 03/04/2021 21:26

I've had a text to say I'm eligible for the £500 tax credit bonus this month.

We live reasonably frugally (I do get some of the working tax credit element and have worked throughout covid) but not as strugglesome as we were 5 years ago due to job changes etc. I'm a single parent, kids see dad incredibly rarely. We have a monthly budget that I always stick to which includes putting money away for things like Xmas, birthdays, car expenses, even holiday/emergency fund. We don't aspire to fancy gadgets, I drive a sensible & reliable car, albeit a bit old and battered, kids recognise that we can't stretch to fancy trainers/brand clothing. I have a mortgage that doesn't scare me any more, and is comfortable in our budget. We do occasionally have treats - takeaways, meals out, cheapo weekends away just the 3 of us, budget self-catering holidays when we're able.

So this £500 is a real bonus. I've got nothing that needs replacing, I'm very OK with getting clothing bargains online and I hate physical shopping for the sake of it. Do I stick it in the holiday piggy bank? Make a payment on my mortgage? Treat for me or the kids? Blow it all on sex, drugs and rock and roll?

If you had an unexpected £500 (that was surplus to your monthly budget), what would you spend it on?

OP posts:
JamesMiddletonsMarshmallows · 04/04/2021 16:40

@punkingscissors why does it ever have to benefit the children?

Not all people receiving the £500 have children

Charles11 · 04/04/2021 16:42

I’d save it and spend it over the summer going out and about.

Waxonwaxoff0 · 04/04/2021 16:48

punkingscissors sounds bitter.

Interested in this thread?

Then you might like threads about this subject:

General money
punkingscissors · 04/04/2021 16:48

[quote JamesMiddletonsMarshmallows]@punkingscissors why does it ever have to benefit the children?

Not all people receiving the £500 have children [/quote]
You can only claim WFTC if you already get CTC so yes, they have children. Look at www.gov.uk/working-tax-credit if you doubt me.

It's wrong to get benefits to support your family and then spend them on luxury toiletries for yourself.

ZiggyBaby · 04/04/2021 16:56

@Waxonwaxoff0

punkingscissors sounds bitter.
Very
JamesMiddletonsMarshmallows · 04/04/2021 16:59

Fair enough about the WTC @punkingscissors but why exactly is it wrong "to get benefits to support your family and then spend them on luxury toiletries for yourself" - isn't 'yourself' part of the family too?

punkingscissors · 04/04/2021 17:17

@JamesMiddletonsMarshmallows

Fair enough about the WTC *@punkingscissors* but why exactly is it wrong "to get benefits to support your family and then spend them on luxury toiletries for yourself" - isn't 'yourself' part of the family too?
Who needs luxury toiletries ? Sure, they are nice and of course the PP is part of the family but that's not to point of benefits.
JamesMiddletonsMarshmallows · 04/04/2021 17:20

@punkingscissors why do you think if people have an excess £500 they don't need for food or bills, they should spend it on something they need rather than want?

EggysMom · 04/04/2021 17:26

If we get it (still not convinced, despite getting the text!) then it's going to go into our household rainyday fund. Sorry to be boring!

MyDcAreMarvel · 04/04/2021 17:27

@punkingscissors you can claim wtc if you are disabled . There is no such thing as WFTC there is WTC and CT, you can claim both or either one.

MyDcAreMarvel · 04/04/2021 17:33

@punkingscissors that link is for new claims there are many thousands of people with no children who currently claim wtc.

punkingscissors · 04/04/2021 17:36

[quote JamesMiddletonsMarshmallows]@punkingscissors why do you think if people have an excess £500 they don't need for food or bills, they should spend it on something they need rather than want? [/quote]
If they have an excess then they shouldn't be on benefits.

punkingscissors · 04/04/2021 17:37

[quote MyDcAreMarvel]@punkingscissors you can claim wtc if you are disabled . There is no such thing as WFTC there is WTC and CT, you can claim both or either one.[/quote]
That's not what the government site I linked to up thread says. It clearly states no CTC without WTC and now WTC without CTC. If you can't meet those criteria then you can claim UC if eligible.

notacooldad · 04/04/2021 17:41

I would put it straight i to savings.
You said you don't need anything at the moment so why spend for the same if it.
I got an unexpected cheque last week and have done exactly the same. I've nothing to pay off I'm not going in holiday anytime soon, I don't need handbags and other stuff so why waste it ' just because '

gallbladderpain · 04/04/2021 17:48

If you are entitled to the £500 it means you were receiving the extra £20 a week from April 20 until this week so therefore from next week your award will be down by £20 a week this is what the £500 is about. The £20 per week extra was extended for universal credit until September but the way tax credits work rather than continuing to pay the extra £20 a week until September they have to give it in a lumpsum.
Just so people are aware that this isn't an additional £500 so you may need to factor that in before you spend it.

Original poster
Ffsffsffsffsffs · 04/04/2021 18:00

[quote MyDcAreMarvel]@Ffsffsffsffsffs it’s not an extra £500 though , you will actually be £540 worse off via wtc than last year.
April 2020-April 2021 you had an extra £1040 in wtc. This year ( as a one of payment) will receive an extra £500 in wtc.
The only people for whom the £500 is a bonus is those that qualified for wtc but earned too much to receive monetary payments.[/quote]
My payments will reduce anyway soon as my salary is going up slightly, so I'm fortunately not relying on every penny (though I have done in the past, it's a horrible situation to be in).

I'm not a handbags, jewellery or art person, nor do I see the point of fancy toiletries because the kids will waste them anyway. It won't be burning a hole in my pocket as over the years I've become used to only buying things I need, and everywhere is shut at the moment anyway!

I've had a look at premium bonds, may give that a go as it's money not earmarked for anything, but is accessible in an emergency. Maybe it's the beginning of my 3-6 month living expenses fund should the worst happen (though I do have insurances for illness/life etc) and I can top them up by £25 a time if I have spare cash at the end of the month.

Or perhaps we'll see what summer brings - if I can find a cheapy UK break, maybe just saying yes when the ice cream van comes will be a nice change.

Just my luck that the car goes wrong, or the boiler breaks down at the end of the month...

Now if I had a spare £10k unexpectedly in my account I'd spend that over and over again Wink

OP posts:
gallbladderpain · 04/04/2021 18:02

Equally if your award did not increase by £20ish per week last year then it is unlikely that you will be getting this £500 payment. You can check your award on gov.uk gateway. Mine will be just over £20 per week down from this week on what it was from April 20. That was the extra covid payment money that is now the £500 to cover that extra £20 a week until September.

CornishTiger · 04/04/2021 18:04

Premium bonds. Easy to withdraw when you need it. Takes a few days.

Do you have a help to save account ?

PhantomErik · 04/04/2021 18:16

I'd put it in savings for now with a view to maybe improve an existing holiday or an extra weekend away at some point.

You could also offer your DC £50 each for an item of clothing of their choice so they could splurge on trainers or hoodie etc.

Enjoy it!

MyDcAreMarvel · 04/04/2021 18:16

@gallbladderpain Equally if your award did not increase by £20ish per week last year then it is unlikely that you will be getting this £500 payment
That’s incorrect , earnings can wipe out the £20 a week but not the £500.

MyDcAreMarvel · 04/04/2021 18:17

That's not what the government site I linked to up thread says. It clearly states no CTC without WTC and now WTC without CTC. If you can't meet those criteria then you can claim UC if eligible.
As I said that refers to new claims.

MyDcAreMarvel · 04/04/2021 18:18

@punkingscissors above was to you, new claims only.

MyDcAreMarvel · 04/04/2021 18:19

@PussyCatEatingEasterEggs you can also claim CT without wtc. Please don’t just google without knowing all the facts, it just makes you look a bit stupid.

Waxonwaxoff0 · 04/04/2021 18:21

@gallbladderpain

If you are entitled to the £500 it means you were receiving the extra £20 a week from April 20 until this week so therefore from next week your award will be down by £20 a week this is what the £500 is about. The £20 per week extra was extended for universal credit until September but the way tax credits work rather than continuing to pay the extra £20 a week until September they have to give it in a lumpsum. Just so people are aware that this isn't an additional £500 so you may need to factor that in before you spend it.
Mine is only decreasing by £10 a week, I won't really notice it over such a long period of time so it definitely feels like a bonus to me!
NatashaAlianovaRomanova · 04/04/2021 18:25

I'm putting mine towards a new cooker - was going to buy one anyway as mine is a pile of shite & badly needs replaced but now I can get the SMEG one I really wanted but couldn't justify spending the £950... it's also on offer so getting it delivered, installed & old one disconnected & disposed of for £824 all in