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Deft

Claiming Your State Subsidy / Entitlement?

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What's the HPC view on meticulously claiming all possible state entitlements irrespective of personal wealth.

Apparently I will soon be able to claim 15 hours free childcare for my daughter. As my wife described it to me briefly I pondered whether I could be bothered to.

I remember thinking a colleague of mine was a twonk when bemoaning the loss of child benefit years ago, knowing he was earning 75k. I've paid taxes all my life I'm entitled to something back etc.

So should you:

1 Claim everything humanly possible, saving the money for investing in BTL

2 Don't claim it as the government will find a good use for the money anyway

3 Doesn't matter because I am self sufficient and live in the wilderness anyway

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Claim it all and see if you are entitled to Tax Credits as well.

There are people arriving here from other countries and taking minimum wage jobs and going straight for the Tax Credits so i say fill yer boots!

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A friend's daughter will start her 15 free hours in September. It's an afternoon rather than a morning so messes up all their current afternoon habits, like going to nanas on the way to pick mum up.
I spose you don't have to accept it, but nursery is good for kids.

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You couldn't be blamed for taking advantage of the childcare - see it as an early form of education - you can tell the children entering reception class in primary school who have never gone to any formal childcare (mainly to do with an inability to interact with other children, but also how they interact with the adults in class).

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Well she's already in nursery three days a week, has been from the age of one as my wife now works part-time. So it is effectively free money. I'm not a millionaire but the childcare is already budgeted for.

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Take it.

If (as seems to be the case) it's surplus to your requirements, donate it to a Good Cause of your own choice. For example, could you sponsor something a lot of fun at your daughter's school in a few years when she's of an age to have hobbies? And if your Good Cause is a regular charity, don't forget to make sure both they and you reclaim tax under gift aid rules.

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That was the argument my wife made - we are going to send her to state school so what's the difference. I wouldn't think twice about claiming tax relief where possible but for some reason this made me think twice. Like wealthy pensioners claiming free travel or winter fuel allowance.

Charity donation is a decent shout, as opposed to a BTL fund.

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Take it.

If (as seems to be the case) it's surplus to your requirements, donate it to a Good Cause of your own choice. For example, could you sponsor something a lot of fun at your daughter's school in a few years when she's of an age to have hobbies? And if your Good Cause is a regular charity, don't forget to make sure both they and you reclaim tax under gift aid rules.

This. Think of yourself as a mini-Bill Gates i.e. you can likely think of better causes to fund than the Government.

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My advice to anyone is to claim anything the govt is daft enough to give away.

I don't follow my own advice as I can never be bothered. For example, I could be claiming JSA right now (!). I've never had a penny from the govt - except £5k they contributed towards a new Beemer (also !).

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It's fine to take what you're entitled to - just don't make any major life decisions (e.g to have an extra kid or work part time) unless you know you could also cover it through earnings or savings if needs be. State support can quickly be whittled down. Risky to rely on political promises when it comes to living standards.

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My advice to anyone is to claim anything the govt is daft enough to give away.

I don't follow my own advice as I can never be bothered. For example, I could be claiming JSA right now (!). I've never had a penny from the govt - except £5k they contributed towards a new Beemer (also !).

You're not looking for a job though. I didn't claim (contributions) JSA as soon as I packed in a job, but after a few months when the evenings started drawing in and I got bored and started looking for another job then I was straight down there claiming it.

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You're not looking for a job though. I didn't claim (contributions) JSA as soon as I packed in a job, but after a few months when the evenings started drawing in and I got bored and started looking for another job then I was straight down there claiming it.

Quite right. In fact you should have claimed earlier.. The benny office was a much easier experience back in the day when there were many unemployed, and few job centre staff.

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Quite right. In fact you should have claimed earlier.. The benny office was a much easier experience back in the day when there were many unemployed, and few job centre staff.

The last time was 2012 so not the dim and distant past! It was fine as I was actually looking for a job so could easily evidence this but I remember the first money taking a while to come through; so if you're genuinely potless you'd have a problem even with a perfectly valid claim.

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The last time was 2012 so not the dim and distant past! It was fine as I was actually looking for a job so could easily evidence this but I remember the first money taking a while to come through; so if you're genuinely potless you'd have a problem even with a perfectly valid claim.

I actually did claim in 2010/11, though I had sufficient pot to disqualify me from anything means-tested. It was a seriously-painful hassle. Sufficient to discourage me from trying when I was again between jobs in 2015.

The irony is, when I was really potless and destitute in 2003 was when they turned me down altogether.

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I actually did claim in 2010/11, though I had sufficient pot to disqualify me from anything means-tested. It was a seriously-painful hassle. Sufficient to discourage me from trying when I was again between jobs in 2015.

The irony is, when I was really potless and destitute in 2003 was when they turned me down altogether.

Possibly, as Mr Pin's recent experience is anything to go by, they are making it deliberately hard to dissuade claimants.

IIRC the procedure of claiming was quite involved but the actual staff at the labour exchange were fine once I started signing on, although they wouldn't move the signing on day so that I could avoid the day that the library was shut.

I think Mr Pin's main problem was actually caused by turning up drunk one time. Ssshhh.

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It's fine to take what you're entitled to - just don't make any major life decisions (e.g to have an extra kid or work part time) unless you know you could also cover it through earnings or savings if needs be. State support can quickly be whittled down. Risky to rely on political promises when it comes to living standards.

Yes and no, rarely are benefit changes retrospective. The tax credit changes, for example, were only (going to be) for new claimants. Even changes to Council house rules: rtb discounts, succession etc. don't effect tenants before a certain date.

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I was long going to post a topic on this subject. Some people have mentioned the essence of this thread in other posts. Having kids and then lowering your working hours to max out tax credits etc. The other week someone mentioned maxing out your pension relief but I can't remember what it was? Any other suggestions for legally milking the system, post them here....??

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On top of my company pension I put into a SIPP and VCTs and have paid little or no income tax for ?12 years.

I understand that some people view VCTs as risky but they're much less so than buying individual shares. And their dividends are tax free.

Unless you're saving for something short term I remain baffled as to why so many people have ISAs but so few have SIPPs. Their only downside is that you can't access the money until you're 55; the huge upside is full tax relief on what you put in.

Maybe people like paying tax. Personally I like pocketing my gross salary every year.

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Does Mr pin know that he can get pension credit from the age of 60 ? (only for those born before 1960)

I remember going to the job centre about 30 years ago when the `customer ` beside me was told "oh you`re 60 now....you don't have to sign on !"

If it was me I`d have done cartwheels.

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Does Mr pin know that he can get pension credit from the age of 60 ? (only for those born before 1960)

I remember going to the job centre about 30 years ago when the `customer ` beside me was told "oh you`re 60 now....you don't have to sign on !"

If it was me I`d have done cartwheels.

Not any more. Eligibility for pension credit is being increased in line with state pension age.

https://www.gov.uk/pension-credit/eligibility

For equality reasons men were able to access pension credit at age 60 when women's state pension age was 60.

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Not any more. Eligibility for pension credit is being increased in line with state pension age.

https://www.gov.uk/pension-credit/eligibility

For equality reasons men were able to access pension credit at age 60 when women's state pension age was 60.

I'm quite pleased about this as for equality reasons i don't see why those aged 60 should be exempt from JSA job seeking criteria all the way up to age 67 as that is what i and others my age are facing in the future.

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On top of my company pension I put into a SIPP and VCTs and have paid little or no income tax for ?12 years.

I understand that some people view VCTs as risky but they're much less so than buying individual shares. And their dividends are tax free.

Unless you're saving for something short term I remain baffled as to why so many people have ISAs but so few have SIPPs. Their only downside is that you can't access the money until you're 55; the huge upside is full tax relief on what you put in.

Maybe people like paying tax. Personally I like pocketing my gross salary every year.

I've done likewise, though not quite as long as you: I haven't had spare money for quite as long.

As it happens I submitted my tax return for 2015-6 just this afternoon. Tax retained by the taxman after my rebate (which I now await) £134. From a total income that would've attracted higher rate tax if I hadn't been optimising it a while.

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I was long going to post a topic on this subject. Some people have mentioned the essence of this thread in other posts. Having kids and then lowering your working hours to max out tax credits etc. The other week someone mentioned maxing out your pension relief but I can't remember what it was? Any other suggestions for legally milking the system, post them here....??

There are a whole bunch now (or will soon come into force):

Look for salary sacrifice related benefits at your company. Whether they are childcare vouchers, bike loans, or pension contributions - the overall effect is to reduce your apparent, and taxable, salary. With a paid off house, and frugal living - I'm able to sacrifice 3/4 of my salary to pension. One possibility is to get total pension fund up to a certain value so I have the option to retire at 55, and then drop my hours where I currently am so I can focus on the high value stuff I do at work rather than all of the crap. I reckon I'm a couple of years away from that.

ISAs obviously - and the allowance is going up to £20K/year

Solar panels (perhaps more marginal due to cuts in feed-in tariff) - but all income is tax free.

IIRC, the First 5K of airbnb room rentals is/will be tax-free. Ditto first 1K First 5K of dividend income, and first 1K of non-ISA savings income. If you can max out all of these - you can be easily looking at £20+K of income tax-free.

If you are under 40, you'll (soon?) be able to claim a 25% top up on certain type of ISA saving.

If you are a couple, and your other half earns less than 10K(?) - they can transfer some of their tax allowance to you.

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