Deprivation of Capital advice

[Anono1001]

Can anyone shed any light deprivation of capital please? Hopefully I'm worrying over nothing but I've been reading some awful things about how people's spending is being challenged and evidence of Amazon and PayPal spends have are being requested.

I have my migration notice to move to UC by the end of May however will be doing so to coincide with the new tax year as I just think its easier to not enter a new tax year for Tax Credits.

Anyway unfortunately, and it's only unfortunate in the way it has fell close to me moving over to UC I have some work being done to my garden and driveway over the Easter holidays. I work in education so school holidays are the most suitable times to get jobs done. This work will be costing nearly £4.5k. We also have a family holiday booked so I will need to take out the travel insurance and get travel money which i would like to do now the holiday is paid for.

I'm guessing this will be around the £7k mark which includes the garden and drive.

I dont personally think I am doing anything wrong. The garden hasn't been secure for a long time and now the weather should start improving it needs to be done as a necessity to make sure it is safe and secure. The drive is currently tarmac and crumbling away all over. It looks an eyesore. I was looking and replacing the grassed area of my drive with artificial thinking it would be lower maintenance (i was trying to ignore the state of the drive) and was absolutely shocked by the cost of artificial! I looked at real grass but thats been relaid twice already and even gravel options but its not really what i want. The cost ot replacing the whole drive was way more cost effective as eventually the drive would need doing anyway.

My son has complex additional needs (all very well documented through professional and school input) and to be honest the holiday is for his wellbeing. I struggle to get him out the house most days, I've travelled with him once before and though the travelling side/airport was what I can only describe as hell, the holiday itself was the most wonderful experience. His wellbeing was so uplifted by a much calmer relaxed way of life. I cant afford to go every year. We last went in 2022 so this year we would be going anyway and that was finally booked at the beginning of March following lots of communication with the owners over months. And of course a holiday requires spending money and travel insurance.

I'm abit annoyed feeling like I have to justify my spends if I am honest hence why ive felt the need to explain above (maybe i didnt need to explain any of it). I work full time and am a homeowner so I feel I should be able to do these things to my home and for my child without fear of being challenged. Talks for the garden and drive started around September last year. They would have been done then but I wanted to wait for the weather to improve (less likely for storm like winds/rain).

I will be applying to move to UC in early April. I'm not sure what the process is but am fully expecting these spends to be questioned. Am I correct? I have asked for quotes for the works being done. This isn't a problem. As for the holiday surely I'm allowed to take my child on a holiday for his wellbeing and some respite? I'm meeting family over there for a few days, then will have a few days on our own and then we have friends coming out for the remainder of the holiday.

Though all this will be taking around 7k of my savings I will still be over the £6k which I understand they start to reduce entitlement for every £250 over which is fine. At some point I need to look into a new roof too but this will be a big job so wont be this year. It may sound silly but I've felt the need to take photographs of everything to prove it needs doing. It would upset me if it was assumed i as 'getting rid of money'. Our TV was also broke last weekend by my child and I'm too scared to replace it as this will be another spend to add to the list. It doesn't even come on anymore and has a humongous star shaped crack in the screen! But I'm holding off replacing as a TV could be seen as a luxury.

Can anyone tell me if I am likely to be challenged about these spends in March or what am I likely to need to provide to support the money I will be paying out.

T.i.a

No stop listening to rumours. DOC doesn't apply as you could migrate to UC with 40k in the bank so it's irrelevant what money you spend before transferring over.
Once you move over it's up to you what you spend your savings on. DOC would apply if you have an inheritance that puts you over the 16k once on UC and you spend that money quickly other than to clear debts in order to re apply for UC.
re Paypal /amazon they may look at you receiving money via selling not you buying things.

@DragonFly98 thank you for responding. You've given me a sense of relief. Thank you for explaining. It would seem the stories I have been reading may have been taken out of context and because of what I am spending at the moment it's made me wonder what it means for myself.

My saving are well below £16k, I didn't realise you were allowed more when migrating. Mind you it's taken me years to save up what I have so it wouldn't make a difference to me.

Is it worth keeping proof of my spends should I be asked? Others have said it Will come down to the decision maker if they allow it or not. I think that's what's scared me, that someone could decide it's not acceptable spending

Agree with dragonfly my understanding is that it is having receipts for big spends ie to evidence that you paid money to contractor for your drive and didn't pass it to a family member to hold for you.

Thanks both. So glad I asked now. I feared I'd have people saying how can you save if you claim TC or UC, but as I am a homeowner I feel I need to have some safety net as no one is maintaining my home but me.

Thank you for making me feel better. I dont feel too had now. So the holiday money won't be challenged either? Which I know sounds a very silly question because we Will need travel money for our holiday.

Can you tell the move I'd making me really nervous

Bad*

No the holiday won't be challenged either please don't worry. When you migrate if you have savings over 6k and less than 16k your UC will be reduced by £4.35 for every £250.
And to clarify savings is how much money you have when you migrate so money in any bank account including your regular current account , PayPal credit balance, any money you have at home, premium bonds, investments basically any money that is yours even if it locked away and isn't instant access. Once you claim UC savings are classed as the above on the last day of your assessment period , so having a higher amount when you first get wages or UC but then spending that money during the assessment period isn't classsed as savings. You also only need to update UC each month if your savings are £6k or above. When they are below you don't need to update.

Thank you @DragonFly98 I really do appreciate your advice. I've been told to migrate over on 8th April. When will my assessment period be?

All my bills go out between 1st and 5th of each month. I also get paid monthly on or around 26th and usually abit earlier than this in December maybe a week maximum. When is best?

I feel much more comfortable now and to be honest though I dont think I'm doing anything wrong all the 'answering to' has worried me

i was in a similar position and had the work done no questions asked.

Brilliant news @DrCoconut seems I've been stressing over nothing

Either apply by the 18th of March so tomorrow or wait until 3-8th of April so you are a week either side of you wages in case you are paid early or late. You Assement period will be the date you applied till the day before a month later. So if you apply tomorrow it would be 18th-17th of the month. And you would be paid on the 25th of the month with 25th April being your first payment. When do you get tax credits because you can't apply the same day or you will get an over payment.

8th of April is the last day btw not the day you should apply although you can wait until then.

Bit confused I thought you said end of May was your migration date? Never mind I see you want to stay in line with the new tax year may as well apply on April 6th then.

Yes to avoid any overpayments I would like to move on the tax year but was advised to do it 8th April?
I think I'm one of the lucky ones who only get paid once a month so I'm hoping I Will never have 2 wages in the same assessment period

Also how are Children's savings viewed. My son has £100 saved each month. I think its called a regular saver with Halifax. You pay into it for 12 months and don't touch it. It then gets transferred into his ISA at the end of the 12 months. His ISA can't be accessed until he is 18. His smaller account is never touched and will never be much above 1200 per year. The account is in his name.

8th of April is fine with your wage date assuming you don't get tax credits that day. Children's accounts belong to the beneficiary ie your child even if you can access it. It doesn't count within your savings limit however if you were putting thousands in there ( outside of an ISA) it would raise suspicion about whether you are using the account as your own. The dwp would have to prove that however.

That's why you leave a week either side of wages so you don't get paid twice in an AP due to early or late wage.

Thanks for the advice @DragonFly98