ADVICE PLZ - CARERS ALLOWANCE (Taxable)

ISLANDGAL

Hello

New to this and desperate for some advice.

Today I received the tax credits reward for 2008/2009. My husband earns around £23k a year, and I am a housewife. Today I was shocked to find out that Carers Allowance (which I get as my son has a disability) is actually taxable.... I am gobsmacked, and worse still, I haven't declared it for the last few years. I rang the Tax Credits helpline, and the man asked how much I have received in CA for this year, which I told him, and he didn't ask any more information.

I had absolutely no idea CA was taxable, and I am in a complete state about it now. Any advice would be appreciated.

Abbie

NASA_2

You have done the right thing ringing them and letting them know.

Carers Allowance is taxable, always has been, but I would have thought that Tax Credits would have known it was in payment.

ISLANDGAL

Thanks for your reply, but will I be in big trouble as I haven't declared CA before now?

Abbie

NASA_2

ISLANDGAL wrote: »

Thanks for your reply, but will I be in big trouble as I haven't declared CA before now?

Abbie

I'm not even remotely close to being an expert but I dont see that the amount of Carers Allowance you will have received will have a major impact on your award of tax credits.

di3004

To what I can remember, when I first received CA, we did contact tax credits and don't think it made hardly any difference whatsoever, this was a few years ago.;)
And I agree with ESA, you have informed them of this now.;)

FIASCO_2

Now you have given him your amount for carers allowance you will automatically receive a revised award notice....you should get this soon....this will enable you to see the difference this allowance will make to your award.
As previous person has said, you have told them now.....if you cant settle then phone the helpline again tomorrow....speak to someone about how you are feeling, they will record your concerns on your record.

sinstar

Carers Allowance is taxable, always has been, but I would have thought that Tax Credits would have known it was in payment.

They would only know if they had been informed.

You can get P60 style documents from the Department of Work & Pensions to show how much Carer's Allowance you have received in a tax year, that way you know you are giving correct actual figures to tax credits.

Don't worry about it too much, even if the amount is high enough to have caused an overpayment it will come out of your current entitlement at a percentage (from your income I don't think your entitlement would be low enough for current entitlement to be completely recovered).

NASA_2

sinstar wrote: »

They would only know if they had been informed.

Some government systems 'talk' to each other.

When Tax Credits are awarded after a claim to JSA or IS is in payment they download onto the payment system. I'd like to think the Carers Allowance payment system sends information as well.

ISLANDGAL

Thank you to everyone who replied.

Like some of you said, I have informed them now.... so will wait and see what happens. Will keep you informed.

Thanks again

pupsicola

Carers allowance is a taxable benefit. You have told them about it now and if any adjustments need to be made to your payments they will let you know.

Its so confusing with tax credits etc. Dont beat yourself up over it

Sarah