TOPIC 5 - State benefits and HMRC tax credits Flashcards
Lilian is 75 and in poor health. Her daughter Alison looks after her for several hours each day. Subject to meeting the eligibility criteria, Alison will receive:
a) Carer’s Allowance.
b) Personal Independence Payment.
c) Attendance Allowance.
d) Disability Living Allowance.
a) Carer’s Allowance.
Les is receiving Working Tax Credits and has four children, Lia, aged 14, Leo, aged 18 and in the early stages of an apprenticeship, Livvy, aged 19 and in her first year at university, and Lenny, aged 20 and in his second year at university. For how many of his children can Leo claim Child Tax Credit?
a) One.
b) Two.
c) Three.
d) Four.
c) Three.
Kyle has just started work at the age of 18. Which of the following is true in relation to his state retirement benefits? He must be credited with:
a) at least 1 years’ National Insurance contributions to receive any new state pension.
b) 30 years’ National Insurance contributions to receive the full basic state pension.
c) 35 years’ National Insurance contributions to receive the full new state pension.
d) at least 15 years’ National Insurance contributions to receive any new state pension.
c) 35 years’ National Insurance contributions to receive the full new state pension.
Statutory Maternity Pay is payable a for a maximum of:
a) 12 weeks.
b) 26 weeks.
c) 39 weeks.
d) 52 weeks.
c) 39 weeks.
George is 75 and, having been self-employed all his working life, retired at the age of 66. He could potentially be in receipt of which state retirement benefits?
a) Basic state pension, pension credit and savings credit only.
b) Basic state pension only.
c) Basic state pension, pension credit, savings credit and an additional state pension.
d) Basic state pension and pension credit only.
a) Basic state pension, pension credit and savings credit only.
Which of the following state benefits has not been replaced by Universal Credit?
a) Income Support.
b) Income‑related Employment and Support Allowance.
c) Statutory Sick Pay.
d) Housing Benefit.
c) Statutory Sick Pay.
Contribution-based Job Seeker’s Allowance:
a) may be reduced if the applicant has significant savings.
b) is payable for a maximum of six months.
c) is a tax-free benefit.
d) is paid at a variable rate, depending on contributions made.
b) is payable for a maximum of six months.
According to government statistics, in the previous 12 months average earnings increased by 4.3% and inflation increased by 3.2%. This means that both the basic state pension and the new state pension will increase by:
a) 2.5%.
b) 3.2%.
c) 4.3%.
d) 5%.
c) 4.3%.
in relation to Support for Mortgage Interest (SMI), the loan:
a) must be repaid within 24 months from the end of a claim.
b) payments cover capital and interest on the mortgage.
c) is secured by a first charge on the property.
d) payments are made direct to the lender.
d) payments are made direct to the lender.
Which of the following state benefits is tax free?
a) Statutory Sick Pay.
b) Contribution-based Employment and Support Allowance.
c) Disability Living Allowance.
d) Carer’s Allowance.
c) Disability Living Allowance.
Why is it important for a financial adviser to know about state
benefits?
In order to give appropriate financial
advice. For instance, when working out the level of life assurance cover
that a family needs, the income that would be available from state benefits
if a family wage earner were to die has to be taken into account
Once Universal Credit is fully implemented, parents who are
eligible for Child Benefit will have to claim Universal Credit
instead. True or false?
False
Which of the following is not a feature of Income Support?
a) It is only available to claimants who have made National
Insurance contributions.
b) It is available for claimants aged between 16 and the
qualifying age for Pension Credit.
c) Benefits are tax free.
d) Both income and savings are subject to means testing to
determine eligibility.
a) It is only available to claimants who have made National
Insurance contributions.
James has been working in IT support for 12 years. His current
job is a fixed term contract and ends next month. Assuming
James has made NICs throughout his working life, what benefit
is he likely to be able to claim while he is unemployed?
a) Working Tax Credit.
b) Income Support.
c) Contribution based Jobseeker’s Allowance.
d) Employment and Support Allowance.
c) Contribution based Jobseeker’s Allowance.
Aliyah has been working for Abbots Transport for 16 weeks.
She is 24 weeks pregnant. Which of the following state benefits
may she be entitled to?
a) Statutory Maternity Pay.
b) Income Support.
c) Child Tax Credit.
d) Maternity Allowance.
d) Maternity Allowance.
