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Carer's allowance advice

6 replies

Hopefullysmart · 30/07/2019 20:07

Can anyone advise me on this?

I'm currently not working but expect to start work soon. If I apply for Carer's Allowance for DF, what will the impact if any be on my tax status when I start work?

When I do start, I might just creep into the 20% threshold but most of my income will be untaxed.

Will the allowance bump up my income so that I will pay tax on more of it?

The reason I ask is that I will rely on all my income, but I plan to pass the allowance to DF to use. Thanks in advance for any info.

OP posts:
slipperywhensparticus · 30/07/2019 20:13

You are restricted in your earnings if you claim carers you can ear around 120 ish a week any more and they take it off you because you need to be around to care for the person your claiming for

fleshmarketclose · 30/07/2019 20:14

If you earn more than £123 per week you are no longer entitled to Carers Allowance.

Hopefullysmart · 30/07/2019 20:43

Thanks for the replies.
I'm not sure how much I'd be earning as it will be supply work for a while, so there is a chance that I could be earning, but would still be eligible for carer's allowance.

Wrt to working too much to be actually caring for DF - not the case, as I currently care for him all weekend, and would work Mon-Fri when he has other help.

OP posts:
MyDcAreMarvel · 31/07/2019 00:08

It doesn’t matter how many hours you care for , carers is in low of a wage past £123 a week. Can reduce with pension.

molinor · 31/07/2019 01:22

The earnings limit for carers allowance is £123 per week after deductions (tax, NI and 50% of pension contributions). I get paid £197pw, so I pay in £148pw into my pension to allow me to continue to claim carers allowance. If you have fluctuating income it gets trickier as they will want payslips each month and it takes time to process each one, so it can be months before you get the carers allowance paid.

You can also deduct expenses for paying for someone to look after the person you care for, or childcare (up to the value of half your earnings), so that might help bring your wage below the threshold.

Carers allowance is taxable, so yes it will affect your tax. But you can use pension contributions to mitigate this as well.

Hopefullysmart · 31/07/2019 08:53

Thanks molinor, that's helpful and might go to explaining how a couple I know, both working full time, are receiving this benefit. They have weekday carers so could be classing payment for this as an expense and making pension conts. too.

They both earn well though so I'm still amazed they are eligible....
Thanks.

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