Carers Allowance and setting up as a sole trader

[CopyWoman]

Hi. I am planning to set up as a sole trader in the next month or so. I currently receive Carers Allowance for my son who has autism. I understand that you can earn about £100 a week and continue to claim carers allowance. My aim is that I will be earning over the threshold eventually and not claim carers allowance at all, but in the meantime there is bound to be times when some works I earn nothing and other weeks I earn over £100 limit. Does anyone have any advice to give on how I manage this? Would I have to advise HMRC on a weekly basis or does it form part of self assessment? The easiest thing would be to not claim it at all I can't quite manage that - not in the early days anyway. I obviously don't want to do the wrong thing and claim it when I shouldn't though. Has anyone been in a similar boat?

This £100 a week is after deducting tax, national insurance, half of any contribution to an occupational or personal pension and certain other expenses. This may include childcare costs and payments you make to other people (not close relatives) to provide care while you work. Any occupational pension you get is ignored, as are certain payments from the council for someone temporarily in your care (e.g. fostering allowances).

If your earnings vary, you may still be able to claim carer’s allowance for the weeks when they are below the £100 limit. The DWP also has the discretion to average your earnings over a five-week period, or a ‘recognisable cycle of work’ if you have one.

hth

Thanks. I guess I need to speak to them. I just hate hanging on the phone for hours waiting to get through!