Carers allowance/ tax credits is it pointless?

[3babies22]

Hi ive just been awarded carers allowance for my DD. But after looking online im not sure its even worth it once i tell tax credits am i going to end up worse off for this? If anyone has claimed CA on TC do you mind advising how badly they were effected? Do TC reduce by the full CA amount?

It is treated as taxable income for TC so needs to be declared in full at every annual review. It does obviously reduce your tax credits yes. By how much obviously depends on your circumstances and whatever else anyone in the household earns.

If you’re on universal credit it is taken from your monthly award £ for £. (You do receive an additional carers premium on UC for about £163 so cancels a bit of the £ for £ loss out.)

You won’t be worse off. Even with UC where it is taken £ for £ you won’t end up worse off. And there are other benefits of claiming CA e.g. NI contributions.

@3babies22 were you able to put an exact date for when you started caring for DD? I ask as my son gets DLA and I'm not sure whether it's from when he first started getting that or if literal date of his birth or when his add etc was diagnosed?

Pandabuggle It wants the date of the DLA award as you aren’t eligible for carer’s allowance without that (or PIP/AA for adults). It is asking so they can work out if your award can be backdated and if so how far - it can be backdated 3 months, or to the start of the DLA claim if you have been notified of the DLA decision within the last 3 months.

@3babies22 how long did it take from applying? sorry to ask just wondering how long it will take