Carer's allowance & Self employment

Dr_Z

Hello
I recieve Carer's allowance , but was recently the opportunity has arisen for me to do some part time work , Only 8 hours per week on a self employed basis

I researched this quite well , (I thought !) and registered myself for self assessment , plus let all the relevant authorities know , but there are a couple of things I am still a little confused about

I understand Carers Allowance is a taxable benefit - I am guessing that this means I should include the Carer's allowance in my earnings (for the Tax Return) - A few people I have spoken to suggest this is not the case , and that I would only include earnings from work in the Tax return

The other thing (which is loosely connected to the above ) - is NI contributions - The amount I earn and the Carers Allowance would still be low enough for me to be exempt from NI contributions - Am I required to obtain an exemption certificate - or does the fact that we are still receiving Income support (as a family ) mean that NI is taken care of automatically from the IS end of things ?

If anyone here can shed any light on either of these points , I'd really appreciate it

Thanks :beer:

Dr_Z

Ah - Searched on here but didn't find anything , But did a Google search and it led me to a thread on here that answered my first question !

So that just leaves the NI exemption thing - TBH I may just apply for the exemption certificate anyway ,as I have nothing to lose, or do I ?

cw18

I would have assumed (and it is only an assumption) that the Carer's Allowance would be treated as if it were a "second job". If you have two jobs and earn £60 a week from each, then you don't pay any NI as each is below the threshold..... but if you have one job earning £120 you do. It's not like Income Tax that is charged on combined income.

Would be interested to know whether CA is taxable or not, as I'll probably be claiming this from the end of the year once I've been made redundant (compulsory, but I have a 3 month notice period which I already know is likely to be instigated in the next couple of weeks).

stazi

CA is taxable and will need to be included in your tax assessment. You will also need to declare all your S/E earnings to DWP as it may affect both the CA and/or IS you get.

You will also need to register as S/E with HMRC for NIC purposes, and apply for the Small Earnings Exemption Certificate (SEEC).