To ask about dad funding me for a year

[Serafina111]

I’m due to start a one year masters course this year, and the postgraduate loan will cover the course fees and nothing else.

Apart from Child tax credit and Child benefit (I’m a lone parent with one toddler dc) I won’t have any other income.

I currently work 16 hours a week and get working tax credit but I’ll have to give up my job when I start the course as it’ll clash with the hours.

Apparently income support will count a third of my loan as usable income even though it’ll be spent on course fees, so I doubt I’ll get anything from them.

My dad is in a position to fund me for one year, including my mortgage repayments and living costs plus any childcare I have to pay (I’m hoping I’ll get the 15 hours funded childcare for two year olds at least). This will come to about £15,000. It’ll be in lieu of inheritance.

Will this be counted as taxable income or do gifts of money from family not count? I’m trying very hard to work out my finances for that year and I’m worried about miscalculating or being liable for anything I’ve not thought of...

Gifts aren't taxable. If your dad were to die within seven years of the gift it would become part of his estate and may be liable for inheritance tax if he leaves more than £325k.

Thank you! Also - how does anyone do what I’m attempting to, without help from family?! There’s no way I could do it otherwise.
Does anyone see any reason why I wouldn’t get the 15 hours childcare funded for dd, who will be two years old when the course starts?

Lots of people don’t do it, OP because very few people have relatives who can give them 15k

No idea how people do it without help. We're funding my step daughter to do her nursing MSc.

Meant to add that's with the NHS paying her fees. She was also one of the very last yo get a bursary.

Most lone parents on benefits DONT get to study. It's a luxury.

Serafina other people don't attempt to do it unless then can afford it or are lucky like you.

I think it's really nice of your dad and more user to you now than when he dies.

People often do post-grad part time (e.g. evenings or one day a week)

Yeah I completely get how lucky I am! Not that I’ve ever taken handouts before. I just meant it’s really unfair to most people that it’s impossible for them

When I did my Msc I was in the same position as you but just had to continue working 16 hours around my course so I got a bar job. You could do this and your Dad could look after your child instead. That 15k would be so much more useful as a financial buffer for you and your son you would have more options of what to do after your masters if you needed to relocate, for example.

OP this is confusing. You exist as a LP on child tax credit and child benefit, your 16 hours and working tax credit. Yet you have mortgage repayments so clearly afforded a deposit?

Your DP can give you £3000 pa as their child tax free (I understand). For anything more, and how it affects your liability for income tax/inheritance tax, I would suggest your DP goes to an IFA or you read through and consult HMRC - though they can't advise on tax avoidance.

What difference would your master's make to your life and financial prospects?

Leatherbound I’ll definitely see if I can get a job that works around the course, but I’m thinking worst-case scenario, no income, just in case it comes to that

milliemolliemou not sure why it’s relevant how I got my deposit together? But I’m 39 and saved for many years for it.

I don’t have a DP, so I’m confused by the rest of your reply.

I no nothing about this but just wanted to say good luck and how nice of your dad as well

Know*

You’ll have plenty of time for a part time job as well as your course, so i dont see why you’re giving up your job?

My master’s would enable me to get a very well-paid job in a different field to the one I’m currently in (it’s a conversion course)

It's entirely up to you how you use the money. As for using your dad as child care, he may live hundreds of miles away, he may rather eat his own liver than do child care, there are probably loads of reasons I haven't thought of. Why do people have to interfere when they haven't been asked.

Good luck. It's a great offer, take it up and enjoy your course.

sootsprite my current job wont work around it, I’ve asked. It would also mean me being away from dc 5 days a week if I’m working with the course hours and study out of university so I’d rather not have to work as well if possible

Thanks Trinity!

And mmm is wrong, gifts aren't affected by income tax, just inheritance tax as outlined above.

I did my masters with the OU and worked full time.

Thanks Bluelady I was confused by that! Glad you’re right on that!

OP go for it. If your DDad wants to help then that's lovely of him and there is no harm or shame in it, you clearly aren't assuming everyone is in the same boat.

I took out a career development loan of £10k for my postgrad because I felt that through 2 degrees already my parents had helped me enough! They still buy the odd big ticket purchase for me, because they can and they want to. I appreciate I am very lucky and I don't expect it or take it for granted. If I have children I'd hope that I can do the same for them.

Good luck :)

No problem. Apparently David Cameron's mum gave him £200k.