Can someone answer a tax relief question please?

[Ouchmyheadhurts]

I get carers allowance for disabled dc. Have always worked term time only so under the maximum amount and could always claim carers allowance and was important for the tax relief (is that the right word?) as I don’t pay tax..... if I was to get a job through the year so just above the amount to claim carers allowance but still won’t be taxed as pay too low, will this cause me problems when it comes to me retiring or claiming sick pay or anything like that? I’m a LP so this is all on me but I’m not sure where I stand about losing carers allowance but still not earning enough to be taxed/NI?

if I was to get a job through the year so just above the amount to claim carers allowance but still won’t be taxed as pay too low, will this cause me problems when it comes to me retiring or claiming sick pay or anything like that?

www.gov.uk/statutory-sick-pay

Overview

You can get £94.25 per week Statutory Sick Pay (SSP) if you’re too ill to work. It’s paid by your employer for up to 28 weeks.

You need to qualify for SSP and have been off work sick for 4 or more days in a row (including non-working days).

You cannot get less than the statutory amount. You can get more if your company has a sick pay scheme (or ‘occupational scheme’) - check your employment contract.

Ok thank you for that. Do you know the answer to my question about NI/tax contributions and retirement?

Its in a table so I cant C&P it for you but the lower threshold, if you are employed and don't pay NI, yes you do still get pension accruals and associated benefits

Lower Earnings Limit (LEL)
Employees don’t pay National Insurance but
get the benefits of paying

www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

Thank you, I think I sort of understand.... so because I’m a low earner I won’t get less than the standard pitiful pension when I get to it? I have 20 odd years of working life left and haven’t paid tax for the last 13/14 years due to being out of work for kids and then being on such a low wage. I’m worried about when I’m older. I have no idea when I will be able to earn a decent wage due to disabled dc. I don’t know how he will become as an adult, of course I’m hoping fully independent but I’m not sure and concerned as the pension I paid into before kids only has about £3k in it!!

Why then was I told repeatedly by the carers allowance people that it was really important to claim it due to (I can’t remember what term they use!) the tax side of things. Yet if I’m not going to be penalised (just losing the money each week) then why is that ok yet no claiming carers is not ok? Not sure what I’m missing? Please excuse my ignorance but I’m not very good at these sort of things and until now have stuck my head in the sand to worry about it later and now is the later!

Someone will correct me - as I understand it, you now only have to make 30 years contributions to get a pension, rather than the 40 it used to be. Im no guru - I'd move this to the money board or call the DWP

www.gov.uk/pension-credit-calculator

My understanding is that while you were on carers, that has covered your NI contribution for you, so you will have accrued those years of your pension. If you go back to work, even if you don't earn enough to pay NI, you'll also accrue those years because you are working. If you hadn't been working or on carers, you wouldn't have accrued those years. Does that make sense?

Yes thanks that makes sense. So Iv had 10 years of no carers allowance and no working (I didn’t know to claim carers allowance for about 5 of those years!) if I didn’t go back to work until I lose the carers (which I probably will as dc will possibly have trouble moving to pip) and I would rather work worse case scenario, or went back but not enough to get taxed then I should be ok? Is it consecutive 30 years or a collective of 30 years? I should just be ok and made the 30 years I think

Were you claiming child benefit in the years you were not working or claiming carers allowance as also gives you NI credits

Iv always claimed child benefit, eldest is 13. So have claimed since he was born and then for subsequent dc. Carers allowance Iv only claimed for the last 3 years as I didn’t know about it before then! Does that mean I should be fine?

Even if you're not working while looking after your baby, you'll get National Insurance credits when you claim Child Benefit until your youngest child is 12. The credits are automatically added to your National Insurance account when you claim Child Benefit, so you don't need to do anything.

So I only have one year left then as my youngest is 11? But I should be ok if I either a) stay as I am with carers allowance and very low wage or b) new job which means I lose CA and not enough to be taxed....?

That should be fine. You can check your national insurance record here:

www.gov.uk/check-national-insurance-record

Brilliant thank you everyone who replied.