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Original poster

Tax credits and carers allowance

11 replies

whendoesitgetessier · 06/05/2023 22:26

Hello everyone needing some advice...

So I was made redundant from my job 😢 so needing to sort my finances out but a little confused on carers allowance. I understand it's classed as an income so wanted to know what the knock on effect it will have on the current benefits I claim.

So I claim tax credits
Working tax credits
DLA (high rate care and low rate mobility)

I never claimed cares as I was over the monthly income limit.

So now being made redundant I will have to claim it so with this in mind how will it effect my tax credits for example will I loose the enhanced payment I get because my little one gets high rate care??

Help my head is in a complete scramble I loved my job and I am looking for a new one but at present it's providing a little challenging..

I am currently on the old style tax credits we haven't been merged over to the UC system yet I have looked into it but worried that if I start claiming other benefits I will have to wait up to 6 weeks to receive any payments where as if I wait for them to do it I will not have to as according to them payments will still be made while it's being merged over.

I have checked and I actually think I will be better off on uc but rather nervous about doing it and with the complete nightmare I have atm with being jobless due to no fault of my own I don't want to add fuel to a well lit fire.

I have 3 children 2 born before 2017 and the other in 2019 so the 2 child rule does affect me in the aspects on the benefit system.

Any advice would be much appreciated thank you all xx

OP posts:
Babyroobs · 06/05/2023 23:58

If you are not working now then you will lose working tax credits unless unless you have a partner ? You will not lose the child disability premium as that has nothing to do with working. Carers allowance is classed as taxable income as you are aware.

Babyroobs · 07/05/2023 00:01

Also if you move over to UC, you are offered an advance payment to tide you over until the first payment comes through. It is one month and seven days that you wait for first payment. One good thing about Uc is that you get a carers element and can still keep that even when you resume work, there is no earnings threshold on it. You should check whether you would be better off on UC but I think it is most likely that you would.

Original poster
whendoesitgetessier · 07/05/2023 00:23

@Babyroobs oh yes I forgot to say I knew about loosing my working tax.. I am literally trying to claim as limited as possible so when I do get a new job I don't have the fuss of having to deal with possible over payments not sure that happens much with uc as I have heard it's more real time rather than predictions like the old style tax credits is..

I will have a look at doing the uc change earlier rather than waiting for the migration invitation which I am anticipating will be any time between now and 2024..

I have heard about the online journal thing how easy is that to navigate etc I have seen some horror stories of people trying to update their claims and messages not being dealt with accordingly within a reasonable time frame..

I did try turn to us to have a rough estimate on what I could get on the old style tax credits and uc but stumbled on it as I don't really want to claim housing benefit as I work my income roughly 2 months ahead of myself and have built up credit on my rent account over the months and I am really hoping to get a new job before that runs out obviously if needs be I will have to claim it..

I will definitely check uc out as I no I will have to move onto it eventually..

Can I also ask if I was to get an advanced payment how is this deducted would it just be small payments over the months as I am completely aware that uc is paid monthly not weekly.. I will definitely miss my weekly payments.

OP posts:
Hoosemover · 07/05/2023 08:26

I presume you are claiming DLA for one of your children. DLA/PIP
is non taxable. UC is also non taxable
if think you can claimed a caring element on UC, if you do then you can’t claim carers allowance

Rant46892 · 07/05/2023 08:34

Hoosemover · 07/05/2023 08:26

I presume you are claiming DLA for one of your children. DLA/PIP
is non taxable. UC is also non taxable
if think you can claimed a caring element on UC, if you do then you can’t claim carers allowance

You can claim Carers Allowance and universal credit with the element. You will not be financially better off but there are some differences and advantages of getting both.

OP - you can call citizens advice for a benefit check.

Lougle · 07/05/2023 08:50

We are much better off on UC than tax credits. 3 children born before 2017 and two on disability benefits. I claim carers allowance, which is deducted pound for pound from our UC, but grants me NI credits towards my pension. We also claim the carers element of UC. We should have changed years ago, but didn't quite trust the calculators.

I deliberately put the claim in on the 8th day of the month for two reasons. Firstly, we could guarantee that we wouldn't ever be caught out by DH getting an early salary payment which can cause problems for some claimants. Also, it means that we get our income twice per month, which I prefer to once per month.

Original poster
whendoesitgetessier · 07/05/2023 11:41

@Lougle thanks for that information much appreciated yes I am pretty sure I will be better off on it but rather nervous about swapping over but I may have no choice at this point.. I don't claim anything else but tax credits so hoping that will be much more easier when it comes to the merge over.. I don't really trust the calculations that come up and obviously tax credits have my income history from previous years.. i think I will just do it now anyway as I no it's coming anyways.. that's a good tip about doing it on the 8th day I shall do that too.

OP posts:
CharityBargainTreat · 07/05/2023 11:46

You should claim contributions based job seekers allowance

This also pays your National Insurance "stamp" while you are unemployed

Your redundancy money is not taken into account for a certain time period

Babyroobs · 07/05/2023 11:49

CharityBargainTreat · 07/05/2023 11:46

You should claim contributions based job seekers allowance

This also pays your National Insurance "stamp" while you are unemployed

Your redundancy money is not taken into account for a certain time period

Yes op you could claim New style JSA, but I think it might be an overlapping benefit with carers allowance, although the JSA would pay a bit more.

ThomasWasTortured · 07/05/2023 12:24

whendoesitgetessier · 07/05/2023 11:41

@Lougle thanks for that information much appreciated yes I am pretty sure I will be better off on it but rather nervous about swapping over but I may have no choice at this point.. I don't claim anything else but tax credits so hoping that will be much more easier when it comes to the merge over.. I don't really trust the calculations that come up and obviously tax credits have my income history from previous years.. i think I will just do it now anyway as I no it's coming anyways.. that's a good tip about doing it on the 8th day I shall do that too.

You could do a manual calculation to check whether the calculators are accurate. If you post more about your situation posters will be able to help you with this.

CharityBargainTreat · 07/05/2023 13:07

Contributions based job seekers allowance cannot be back dated, it is calculated from the day that you apply.

Apply today

Info is on www.gov.uk

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