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savings and deprivation of capital
- Chris
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1 year 2 months ago #283299 by Chris
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Chris on topic savings and deprivation of capital
Hi rj,
Anything £6,000 or under - you don't lose any benefits with. Between £6,001 and £16,000 - you lose £4.35 for every £250 over - roughly, you can work this as 20 quid for every £1,000. Over £16,001 - you are not entitled to any help from UC benefits.
If you were just under the 6k - but used what you had for bills, food, etc - then you're fine. Also, if you get a backdated payment from say PIP for example - then you have a year where it is disregarded, before being classified as income.
Hope this helps,
Regards, Chris.
Anything £6,000 or under - you don't lose any benefits with. Between £6,001 and £16,000 - you lose £4.35 for every £250 over - roughly, you can work this as 20 quid for every £1,000. Over £16,001 - you are not entitled to any help from UC benefits.
If you were just under the 6k - but used what you had for bills, food, etc - then you're fine. Also, if you get a backdated payment from say PIP for example - then you have a year where it is disregarded, before being classified as income.
Hope this helps,
Regards, Chris.
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- adam33
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1 year 2 months ago #283303 by adam33
Replied by adam33 on topic savings and deprivation of capital
yes, income becomes capital in the next period, I left a reply earlier but it vanished for some reason, but business assets are disregarded for as long as a claimant in self employed, when that ends they become capital, the DWP agreed to indefinitely disregard my business assets recently once I explained what I needed them for.
paragraph h1050 answers your question, this is the DWP staff manual:
assets.publishing.service.gov.uk/governm...le/1163111/admh1.pdf
I've had 3 pretty horrendous benefit snarl ups when newly self employed, no HB for a year, that sort of thing, but in theory people in the LCW and LCWRA groups are supposed to be able to earn up to £381 a month without it affecting their UC, this can include a business, there used to be all kinds of upsets if people on incapacity got a part time job without the dr saying they could do permitted work, they'd get declared capable of work and end up needing 10 months to get benefits back on, but anyone who can clear that particular obstacle can have a go. personal capital introduced into a business is not classed as income according to the DWP book, a DM decides if capital can be disregarded or not.
paragraph h1050 answers your question, this is the DWP staff manual:
assets.publishing.service.gov.uk/governm...le/1163111/admh1.pdf
I've had 3 pretty horrendous benefit snarl ups when newly self employed, no HB for a year, that sort of thing, but in theory people in the LCW and LCWRA groups are supposed to be able to earn up to £381 a month without it affecting their UC, this can include a business, there used to be all kinds of upsets if people on incapacity got a part time job without the dr saying they could do permitted work, they'd get declared capable of work and end up needing 10 months to get benefits back on, but anyone who can clear that particular obstacle can have a go. personal capital introduced into a business is not classed as income according to the DWP book, a DM decides if capital can be disregarded or not.
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- LL26
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1 year 2 months ago - 1 year 2 months ago #283305 by LL26
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by LL26 on topic savings and deprivation of capital
Hi Bauhaus,
When anyone is considering early retirement, and is being offered their works pension early too, there is often a financial implication. Make sure you/your relative seeks proper advice from a properly qualified pensions advisor so that you understand what you get now, eg as lump sum and what you will get as regular payments thereafter. You might lose out on a lot of money!
I hope this helps.
LL26
When anyone is considering early retirement, and is being offered their works pension early too, there is often a financial implication. Make sure you/your relative seeks proper advice from a properly qualified pensions advisor so that you understand what you get now, eg as lump sum and what you will get as regular payments thereafter. You might lose out on a lot of money!
I hope this helps.
LL26
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 1 year 2 months ago by LL26. Reason: Spelling
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- Bauhaus
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1 year 1 month ago #284062 by Bauhaus
Replied by Bauhaus on topic savings and deprivation of capital
Dear All
Thank you so much for your kind and informative replies. We really appreciate it.
Sorry for the delay in replying but we have had to sort a lot of things out, and my relative health has been impacted by the situation.
Relative has been dismissed so she can get her pension. As part of this this she will get back pay and holiday pay amount to 7-12 weeks pay (she has not been paid for over 2 years: on sick leave for 3). How will that impact her benefits? We did ring and speak to UC and explained that that she wil be getting a lump sum payment of back pay and pension lump sum, he said this would not impact her benefits because they (UC) have accepted she will never work again.
My relative is terrified that they will stop her benefits. I would have throught they would suspend them for the amount of weeks she is getting back pay but the very nice man, we spoke to, said the only thing the UC would worry about is the size of a lump sum: is it between 6000 and 16000? Does anyone know what will happen? If they suspend the benfits will she have to re-apply for them again -given UC knows she is never going to work again-?
Sorry for so many questions, but all the uncertainly is having a terrible impact of her already poor mental health.
Your Bauhaus
Thank you so much for your kind and informative replies. We really appreciate it.
Sorry for the delay in replying but we have had to sort a lot of things out, and my relative health has been impacted by the situation.
Relative has been dismissed so she can get her pension. As part of this this she will get back pay and holiday pay amount to 7-12 weeks pay (she has not been paid for over 2 years: on sick leave for 3). How will that impact her benefits? We did ring and speak to UC and explained that that she wil be getting a lump sum payment of back pay and pension lump sum, he said this would not impact her benefits because they (UC) have accepted she will never work again.
My relative is terrified that they will stop her benefits. I would have throught they would suspend them for the amount of weeks she is getting back pay but the very nice man, we spoke to, said the only thing the UC would worry about is the size of a lump sum: is it between 6000 and 16000? Does anyone know what will happen? If they suspend the benfits will she have to re-apply for them again -given UC knows she is never going to work again-?
Sorry for so many questions, but all the uncertainly is having a terrible impact of her already poor mental health.
Your Bauhaus
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