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Original poster

Carers Allowence and Tax Credits

5 replies

lhelneli · 26/04/2015 14:29

I have just been awarded carers allowance just a couple of days ago, no moneys come through yet, but was told it would only be a matter of days, I am a single parent looking after my 8 year old son and looking after my disabled mother. Do I have to let the Tax Credits People know that I have been granted carers allowance, if so will my tax credits go down?

OP posts:

lougle · 26/04/2015 14:41

Yes, your tax credits are taxable income so you need to tell them and tell your council if you get housing benefit.

SoonToBeSix · 26/04/2015 23:51

You don't have to tell tax credits now you can wait until you do your renewal. If you are on a low income it may not make a difference to your award particular the child tax credits as is calculated on thresholds. HB will count it as income but will then apply a carer premium to your award so you should in theory receive the same amount.

Akire · 27/04/2015 00:14

As others have said should not effect tax credits but it will affect your income support (they will de duct it all as carers allowances is more) or JSA you wil need to sign off. On the positives side as a carer you I'll not have To attend job focused interviews and the like, they may write and invite you but as a carer you do not have to go.

If you have been claiming council tax benefit where it has not been paid 100% ( now it's local some people have to pay small amounts when they were previosu to paid zero) check you may now qualify for more support.

SoonToBeSix · 27/04/2015 00:20

Yes they will deduct the total amount from income support. However you will receive a carer premium from IS approx £30 plus your carers allowance so you will be better off.

PingPongBat · 28/04/2015 17:36

If you want to know how your Tax Credits would be affected, then you can contact your local CAB - they should have access to a benefit calculator - they can put in all your details and let you know what your Tax Credits & other benefits like Housing Benefit will be. If you get any Housing Benefit or Council Tax Support you need to tell your local authority about your change in income too. But as PPs have said, overall you should be better off going from Income Support only to Carers and IS.

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