Abdur Rahman ibn Yusuf Mangera – Q&A The Correct Way of Spending Child Benefits and Tax Credits
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The speaker discusses the benefits of child credit, including a tax system that doesn't require a separate account for it. The child credit is for the whole family to spend on it, not just for the children. The speaker explains that child benefits are for everyone to spend on it, not just for the children.
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The money we get as child credit do we have to make sure it's only
spent on them Do we have to make a separate account for it? From my
understanding of child credit, child credit is not only to be
spent on the children, child credit is essentially a top up for
families who are not making this particular amount of threshold
that the government has in mind. So the there's obviously tax,
there could be tax that's taken off, or sometimes if you're making
below the threshold, no tax will be taken off. But then you get
topped up money, which is to spend as a family. So it doesn't belong
to the husband, or the wife or the children in particular, it belongs
to the family as a whole to spend on them. So they can decide how to
spend on it. In general, it doesn't have to be restricted only
for the children. Child Benefit is a slightly different, but child
credit. Child credit is definitely for the whole family to spend, you
know, for what could be rent, it could be food, it could be
clothing for anybody, of course, it would be abused for just one
person to spend it on themselves, and not on anybody else, or just
to save it for themselves or send their because sometimes what you
have here a wide, what I've seen as questions coming through is
that a person will say that my husband is taking all the money
and sending it to his family, you know, in another country, or the
wife is keeping it or whatever the case is, it's for that family to
spend and to basically live their life with when it comes to child
benefits. Child Benefit is more specifically for the children. But
again, do you have to save it and only spend it on the children? It
depends. If the only money you spend on your children is from
child benefits, then of course, all that child benefit has to go
to them, because you're not spending anything else on them. So
all of their food, their clothing, the they're part of the bills of
the house, you know, you're so particular that you spent
everything from the child benefit on them, then that is obviously
the case. But if you're spending on them with your own money
anyway, which means that you're spending with your salary or with
the money of the household, your spending on their clothes, or
anything else like that. And generally speaking, it's up to the
amount of what you receive, the cost that you incur, in bringing
up your children is similar to the child benefit that you're getting,
then you can use that child benefit because you've already
spent, you know, 100 pounds, you're getting 100 pounds of child
benefit for so many children or whatever it may be, you've spent
100 pounds on your on your children anyway, then then that's
fine. So that's the way to look at these things. It's not kind of
like money that's given specifically to the children. It's
money given to spend on the children. It's not an investment
for them. It's not money that you should keep aside for investment,
if you can, if you want to. That's entirely up to you, but just you
don't have to investments are a different thing altogether. This
is not what the government from my understanding is giving Child
Benefit for. That was the fun that was the child fund that they had
where, which worked for several years where whenever you had a new
child, then they put a certain amount in a particular fund for
them. That was a different issue of investment. This is not an
investment