Carers Allowance and working tax credits

(18 Posts)
farming4 Sat 28-May-11 22:48:17

Hi just wanting a little bit of clarification - a friend of mine claims Carers allowance for looking after a relative who gets middle rate dla and when we were talking about renewing tax credits, she told me that she puts down that she is working over 16hrs because of her ca - is this right? Reason I'm asking is that ds2 has middle dla and I claim ca so should I be telling the tax credits office I'm effectively working?

OP’s posts: |
PersonalClown Sat 28-May-11 22:50:07

Yep afraid so.
Carer's is a taxable benefit. You don't need to put hours down. Just the yearly amount. (£2888..disgraceful)

farming4 Sat 28-May-11 22:56:34

PC I have told tax credits I'm claiming CA so no worries there but what my mate was saying was she gets working tax credit as well because she says she is working more than 16hrs a week even though she is not actually employed but is a carer iyswim. On my form each year I always put that I don't work any hours. Hope this makes sense?

OP’s posts: |
amistillsexy Sat 28-May-11 22:57:04

I was on the phone to tax credits yesterday going through my details and the form had me down as working in the uk, but no hours ( DH was 'working in the uk, 37 hrs' as he works full time). I asked why it said I worked, as I don't and he said he thought it was because they hadn't changed it since I stopped working. He didn't say anything about my being a carer.

I claim carers allowance and I don't think it counts as working because if you work when claiming carers allowance and earn more than £100 in a week you have to declare it and you lose the CA. I think she's got itwrong, tbh.

farming4 Sat 28-May-11 23:01:16

Thanks thats what I thought - just wanted to be sure before I took her advice and put in a dodgy claim this year! Thanks smile

OP’s posts: |
mummyplum Sun 29-May-11 12:37:46

please someone tell me you are joking >.< I have been claiming IS instead (am a lone parent)...would of been far easier to claim working tax credits!

BakeliteBelle Sun 29-May-11 18:36:41

I don't think your friend is right as she is an unpaid carer (if she's on carer's allowance). Not 100% sure though

debinaboat Mon 30-May-11 10:24:25

so your friend claims she is "working" because she recieves carers allowance? .. she is not in employment. c a is a benefit, not a wage. i hope she has not been claiming the wtc for long , cos she may have to pay it back.

lisad123 Mon 30-May-11 15:23:30

But they count it towards your income! Not sure what to do thus year as I'm on a 0 hour contract but working as and when.

lisad123 Mon 30-May-11 15:23:57

But they count it towards your income! Not sure what to do thus year as I'm on a 0 hour contract but working as and when.

rebl Mon 30-May-11 15:54:39

Its a taxable benefit but its not work. So you have to declare it in the tax credit form under the other benefits section (not the employment / salary section) if I remember correctly. If you do a self assessment tax return you must declare it as another income (again under the benefits section I think). It is disgracefull. We save the state hundreds of thousands of pounds by caring for our relatives and they still tax us on it. If we didn't do the caring and the state had to foot the bill the country would be bankrupt I recon.

lazymumofteenagesons Mon 30-May-11 17:38:31

It is taxable but it is a benefit. If that is the only 'work' your friend does she should not be claiming Working Tax credits. She will find herself with an overpayment. If you are not working and claiming carers allowance you can put a claim in for Income Support, you do not have to sign on. Its equivalent of being a lone parent.

lisad123 Mon 30-May-11 18:08:22

im not sure if im entiteld to income support, i assumed i wasnt as dh works, now i have looked it says if your a carer. Im up to my eye balls in paperwork is there a wayt o check without all the paperwork?

lazymumofteenagesons Mon 30-May-11 18:16:19

If your husband works you probably won't be entitled to income support. It goes by household income. Are you saying you do not know what to do regards tax credits?

farming4 Mon 30-May-11 21:56:07

I shall be seeing my friend tomorrow and I might have a word with her re claiming wtc and it will be up to her whether she risks an overpayment.

I don't claim IS as my dh works and as you have all said CA is a taxable BENEFIT not a wage. Thank you for clarifying but she was so sure that she was in the right that she had me wondering.hmm

OP’s posts: |
debinaboat Tue 31-May-11 12:23:35

i am not sure but it might not be as simple as risking an overpayment.it might even be a legal matter as she could be commiting fraud. by mistake or otherwise.

derbypub1 Wed 19-Jun-13 11:40:11

Disability benefits that count as income for tax credits

When you make a claim for tax credits your income is worked out by adding together things like wages, interest on savings and some benefits. Some types of disability benefit count towards your income and others don't.

Disability benefits that don't count towards your income

These benefits don't count towards your income when your tax credits are worked out:
•Disability Living Allowance
•Attendance Allowance
•Personal Independence Payment
•Incapacity Benefit (at the short term lower rate paid for the first 28 weeks)
•Incapacity Benefit - if you claimed it before 1995 and have received it ever since
•income-related Employment and Support Allowance
•Severe Disablement Allowance
•Industrial Injuries Disablement Benefit

Disability benefits that do count towards your income

These benefits do count towards your income when your tax credits are worked out:
•Incapacity Benefit paid at short term higher or long term rates - 29 weeks or more
•contribution-based Employment and Support Allowance
•Carer's Allowance – including any dependency increases

stunt101 Fri 19-Jun-20 15:52:47

I’ve just had working tax credit backdated to 2017. As they were paying me child tax credits . But because I receive carers allowance I should have been on working tax credits my wife works part time 16 hours so On that alone didn’t qualify . So was put on child tax credit . On review they realised I was claiming carers allowance so should have been on working tax credits

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