DLA.... TAXCREDITS....

[MrsFrostgetful]

I get DLA... so My tax credits increased....i am also receiving incapacity benefit.

i wondered if the incapacity benefit has a direct effect on the tax credits (i know they are interested in the DLA)

what i want to do you see...though it would be less money... is stop claiming incapacity...and 'activate' the 'underlying entitlement' i have for Carers allowance for tom...however....it's £30 less a week...but.... my hubby is getting paid a little more which more or less covers some of this £30 ... so what i wondered is

...do the tax office count my incapacity purely as income (whereas dla is not counted as income)
....and is carers allowance seen as income too???

so...as long as our total family income was roughly the same...would our tax credits be roughtly the same ...or does the 'status' of being on incapacity mean different to carer????

if i sould post this elsewher...tell me!!! was not sure!

Hello Mrs F!!!

Im pretty sure that tax credits count incapacity benefit as income if that helps.

Not 100% MrsF but I thought Amelia's DLA wasn't included but my CA was. Sorry not much help am I!

wow that was fast!!!

that's my gut feeling...that if i stop IB...that it won't directly affect my tax credits...as they did not increase until i was awarded DLA...so therefore i think IB is 'just' income to them.

dingle...that is how i thought it would be...that as a carer they see me as 'employed'so getting 'earnings'...the tax office list my IB money as 'Earnings'...

what i am more worried about is whetjer being a carer would affect my being classed as qualifying for the disability element of tax credit....which i believe it won't...as i am sure that is connected to DLA...and my DLA i know is not dependant on being on incapacity benefit...ooooh! confusing!

right, stop me if this gets confusing. we get 2 lots of DLA high rate care for the kids, peter gets high rate care and mobility for himself. tax credits went up for the kids but not for peter, his IB and my CA is counted as income, but it doesnt really affect tax credits.

as long as the basic family income is the same then tax credits should remain more or less the same (may a couple of quid difference if they recalculate and do an extra payment like they somestime do)

being a carer will not affect the disability part (is that the severe disability bit where it says how many kids qualify?), plenty of diasbled couples care for each other IYKWIM.

confused yet? i am? lol

misdee...that is fine...made sense!

ah good. i was trying to fathom it all out and was confusing myself as i was typing it. we have so much dribs and drabs coming in, its hard to keep track.

misdee...i'd check that about tax credit etc ref peter...as when my son leigh got dla recently...and i did not get the increase in tax credits...i called the IR to ask about it and found that they had not been automatically notified as should happen when DLA is awarded....so as aresult they corrected ---backdated it to JANUARY which was when leigh's dla started.... so we got a payment covering jan-november...very welcome for christmas! ( basically what i'm trying to say is that in our case EVERY DLA award has increased our tax credits...but the 'automatic ' process of communication from DWP and IR does not always happen.) worries me that if this was someones `1st DLA... and the tax credit did not change...then they wouldn't know it should??? in my case it's just 'lucky' that i knew from the past that it SHOULD increase.

I REALLY hope i am right for you misdee...i know money isn't everything...but you are forever travelling back and forwards to hospital...and you need money to do that!!!!

peter got a small increase on income support, not tax credits.

ah...i see!