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Original poster

Carers allowance and rental income.

12 replies

Ilovechocolatetoomuch · 19/09/2022 11:37

My Ds has been awarded Middle rate care DLA.
I don’t work as we like to keep things as calm as possible for him.
I was looking at carers allowance.
We own a property that we rent out, it looks like I earn £160 a week, but in real life after we pay the tax, the letting agent and the mortgage it’s actually £40 a week.
Would I still be eligible for carers allowance or does rental income count as income?

OP posts:
Scottishflower65 · 19/09/2022 12:16

From carers.uk - The rental income from your flat is not taken into account - the only income that is taken into account is that from paid work, i.e. EARNED income. You could have savings of thousands of pounds and still claim Carers Allowance providing that any income from paid work does not exceed (currently) £128 per week.

Scottishflower65 · 19/09/2022 12:24

it also depends on how properties were acquired / are held too. From Property 118.

’- Properties in a limited company are not counted (as long as you dont draw a salary from the company above the threshold) as they are a separate legal entity. (Dividends and interest income dont count so you can use that to get money from the company)

  • If you hold property in your own name then it all depends on how those properties were acquired. You are allowed one property that was bought as a rental property, if you rent out previously live in property or you rent out property that has been left to you after a death then these are not counted as they think you were not trying to create a business and you are an 'accidental landlord'.

It seems really strange you could have 50 properties that were your previous residence and your fine as you are an accidental landlord, or 50 properties in a ltd company and your fine, yet 2 properties in your own name bought specifically as rentals and nope you don't qualify. Its a very grey area as you could maybe argue if a property was bought to live in but a job fell through so you rented it, or you bought the property for a family member to live in but they passed away before moving in. For them its about your intent, if you have more than 1 property in your name you are seen as trying to earn a living as a landlord so you don't qualify, if you are an accidental landlord and with no other earned income then you are not trying to earn a living as a landlord.’

They have what is called Decision makers guides... Goggle "Volume 3, Chapter 15, entitled 'Earnings for non-income-related benefits':"

Original poster
Ilovechocolatetoomuch · 19/09/2022 12:42

O.k thank you. We only have one property that we used to live in and couldn’t sell as we moved during the recession.
we make £80 a week off the property but it mostly covers the repairs etc. However it does pay the mortgage which is why I was unsure if it’s seen as money earned.
what happens if I apply? Will I have to declare all of it and they will make a decision or is it up to me to find it all out?

OP posts:
Babyroobs · 19/09/2022 18:26

Ilovechocolatetoomuch · 19/09/2022 12:42

O.k thank you. We only have one property that we used to live in and couldn’t sell as we moved during the recession.
we make £80 a week off the property but it mostly covers the repairs etc. However it does pay the mortgage which is why I was unsure if it’s seen as money earned.
what happens if I apply? Will I have to declare all of it and they will make a decision or is it up to me to find it all out?

The carers allowance form asks about rental income.

Crazydaisy111 · 11/03/2023 15:54

Did anyone manage to crack this? Is rental income considered earnings for the purpose of claiming carers allowance?

Original poster
Ilovechocolatetoomuch · 11/03/2023 20:44

They phoned me up and asked me. I explained the situation and said the property is an investment. We do now receive carers allowance.

OP posts:
Babyroobs · 11/03/2023 21:29

I know someone who claims Carers allowance and she was also rung to see what the situation was with her rental property. I'm not sure whether it is counted as earnings, she gets around £450 a month rental income so not over the earnings threshold for carers allowance.

Crazydaisy111 · 12/03/2023 01:11

I think it is decided on a case to case basis and also because the property falls under the earnings threshold. Might be a problem if someone has say 2 or more properties where DWP might argue it is earnings especially if it averages to around the £132 a week which is the current weekly earnings limit.

tinashe666 · 19/04/2023 13:26

if i buy a house and rent it out, is it considered earning and would affect my carers allowance?

Original poster
Ilovechocolatetoomuch · 19/04/2023 16:56

tinashe666 · 19/04/2023 13:26

if i buy a house and rent it out, is it considered earning and would affect my carers allowance?

I would phone and check.

OP posts:
Reddeb27 · 01/02/2024 11:50

i would interested in knowing the answer to this please anyone, been left a family home, if I rent out does it affect carers allowance?

Babyroobs · 01/02/2024 13:32

Reddeb27 · 01/02/2024 11:50

i would interested in knowing the answer to this please anyone, been left a family home, if I rent out does it affect carers allowance?

You would need to let carers allowance dept know. I think as long as it's blow the £139 a week carers allowance can continue. I'm basing this on someone I know who made a recent claim for carers allowance and received a call asking about the rental income she received.

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