CA and tax credits

Original poster

anxiousturtled · 23/05/2023 18:18

anxiousturtled · 23/05/2023 18:10

Hi,

Please be gentle I am very anxious, have cried and can't believe how dim I am. I'm totally worried about prosecution!

Basically I got my CA letter through today. So my tax credits went up to 151 last year and the letter says no more that 139 a week. Now I can't believe how utterly stupid I am. I didn't realise. This is not an excuse I have 2 children one with SEN who needs constant supervision/support and care needs met. Im exhausted and at bedtime I crawl into bed ready to make the next day as simple for us all as possible.

Does the tax credits include in the threshold. Am I
Going to get prosecuted?

Many thanks

We also get the disability rate of tax credits too.

If anyone can help I'd be extremely grateful. I am in bits. And totally understand paying it back but I'm gutted at potentionally being prosecuted .

OP posts:

Lougle · 23/05/2023 18:20

You're getting a bit mixed up. You'll get the tax credits based on your income. Carer's Allowance counts as income for Tax Credits, so you have to declare it in your annual return. Tax credits don't count as income that goes against Carer's Allowance, so you don't need to worry about the fact that you get more that £139 in Tax Credits.

FatGirlSwim · 23/05/2023 18:21

You’re absolutely fine and no need to worry, just like the pp said. Tax credits isn’t income when assessing for carers’ allowance.

Original poster

anxiousturtled · 23/05/2023 18:22

Lougle · 23/05/2023 18:20

You're getting a bit mixed up. You'll get the tax credits based on your income. Carer's Allowance counts as income for Tax Credits, so you have to declare it in your annual return. Tax credits don't count as income that goes against Carer's Allowance, so you don't need to worry about the fact that you get more that £139 in Tax Credits.

Thank you so much. So because last year I got over the threshold for warnings but in tax credits I'm not in any bother? I'm so sorry to ramble I'm a bag of nerves xxx

OP posts:

Original poster

anxiousturtled · 23/05/2023 18:23

FatGirlSwim · 23/05/2023 18:21

You’re absolutely fine and no need to worry, just like the pp said. Tax credits isn’t income when assessing for carers’ allowance.

Thank you so much I've literally been sobbing to my partner like a absolute idiot that I'll have a huge debt and be landed in court. Xxx

OP posts:

Lougle · 23/05/2023 18:41

As an example:
If your DH earns £10000 and you get CA, your total income for Tax Credits would be £13991. You're allowed to earn £7445. So they would work on an income of £6546. Then they take off 41% of that amount so £2683 would be taken from your tax credits award.

Carers allowance is only based on your earned income alone. So if you don't work, your income is 0, even if you get tax credits.

Original poster

anxiousturtled · 23/05/2023 18:55

Lougle · 23/05/2023 18:41

As an example:
If your DH earns £10000 and you get CA, your total income for Tax Credits would be £13991. You're allowed to earn £7445. So they would work on an income of £6546. Then they take off 41% of that amount so £2683 would be taken from your tax credits award.

Carers allowance is only based on your earned income alone. So if you don't work, your income is 0, even if you get tax credits.

You have literally made my evening I have been whittling. Thank you so much Partner did say "your being stupid" thank you again xxxx

OP posts: