Child tax credit and receiving a pay off

[npg1]

hi everyone. Well I am receiving full child tax credit, I will be getting a pay off from my ex of £30,000 the first half has been paid into my account and I will get the second half when I move out. The first half will go on 6 months up front rent and furniture so probably won't be left with very much and then the second half will pay for a car with some left over. Can anyone give me any advice please.

Thanks

No no but rent for 6 months will be £5500 approx and then will need new furniture and will only spend £4000 on a car so will put the rest into savings

Hi npg1

Would mind just clarifying what you're asking advice on. Is it about whether your pay off affects your tax credits? I'm pretty sure it doesns't affect anything.

£15k does seem a lot to be spending on upfront rent and furniture. Should you not be getting some of the furniture from the house you used to share? If not, has this been taken into account when you made your financial settlement. Furniture doesn't have to be too expensive - you can get stuff second hand or even free if your try freecycle.

Also, are you entitled to housing benefit? You might well be if you are on full child tax credit. Might save you a bit on rent.

Hi, well I don't think I will end up sending 15k on rent and furniture, I'm hoping I will have some left over and no I certainly won't be buying expensive stuff. I won't take much from the house as we never had slot of furniture anyway.

I tried to look online for some advice, yes that's right, will my pay off affect my ctc. I don't think savings come into account but could be wrong. I'm just wondering if I should phone them and tell them.....?

I haven't applied for housing benefit as I'm pretty sure with them you are not allowed savings so thought I would do 6 months without claiming anything first. Thanks

Well I'm getting full child tax credit. I can't remember there being anything on the forms about savings. I have some savings and when I eventually get my payoff that will be going straight in to a new property so can't see how that can affect anything. I know savings of over £6k affects legal aid buy don't think it affects tax credits.

I dont think tax credits are affected, ive never been asked about any savings. Housing benefit however is as you have to declare if you have any, you can have up to £6000 in savings.

Having savings does not affect your tax credits - although any income generated from those savings are included in your household income when assessing your tax credit entitlement.
If you have left over cash put it first into an ISA (tax free and any interest is not counted in your income for tax credit purposes).

Beyond £6k savings the HB will be affected based on a sliding scale I think it is in chunks of £250 at a rate of £1 less rent each week per chunk. However it may have changed as that was the rule years ago.