Carers allwance and tax

sandra45

Hello

I wonder if anyone is in a similar situation and could help me with a query? Or anyone with any advice would be welcomed.

I am currently in the process of considering reducing my working hours and claiming carers allowance for my dad who has had a second more debilitating stroke. As this will have considerable financial impact I'm having to work out my budget etc very carefully but am struggling to find some specific info.

I have been told I can earn up to (but not a penny mor than £100.00) and then be eligable to apply for carers allowance which is £53.90 per week.

I have been told by my employer that if I earn exactly £100.00 I would not pay tax of NI on that. But I belive that carers allowance is taxable. So if my income was £153.90 I would pay about £6.00 a week tax (and maybe some NI). This isnt a large sum I realise but it is significant over a month/year.

Can you tell me if this is correct? Is Would I definitely pay tax if my waged income was exactly £100.00 (already subject to Tax and NI ) and then I would have the carers allowance on top at £53.90? A local carers office had initially told me that I wouldn't pay tax so I just really need this clarifying.

I would appreciate any help or advice.

Thank you in advance.

Sandra

cabbage

Hi

First of all your dad needs to be getting attendance allowance or DLA at Mid Rate Care or above for you to be able to claim Carer's Allowance (CA).

Tax - if your income is below your personal allowance then no tax is payable. Your income includes earnings and CA (i think this is correct, you made need to confirm this). Your standard personal allowance for this tax year and next is £6475. If you get CA, you will get NI credits towards your state retirement pension. If you don't earn enough to pay NI contributions then you will not be eligible for any contribution based benefits such as Statutory Sick pay, Staturtory Maternity Pay, Contribution based Jobseekers Allowance and Contribution based ESA.

To check how to work out your Income Tax use the link below:

http://www.adviceguide.org.uk/index/your_money/tax/income_tax_rates.htm

If you are not having tax deducted at source then you will need to a self assessment form every year and pay any tax due.

twig1_2

This link will help http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Caringforsomeone/DG_10018705

sandra45 wrote: »

Hello

I wonder if anyone is in a similar situation and could help me with a query? Or anyone with any advice would be welcomed.

I am currently in the process of considering reducing my working hours and claiming carers allowance for my dad who has had a second more debilitating stroke. As this will have considerable financial impact I'm having to work out my budget etc very carefully but am struggling to find some specific info.

I have been told I can earn up to (but not a penny mor than £100.00) and then be eligable to apply for carers allowance which is £53.90 per week.

I have been told by my employer that if I earn exactly £100.00 I would not pay tax of NI on that. But I belive that carers allowance is taxable. So if my income was £153.90 I would pay about £6.00 a week tax (and maybe some NI). This isnt a large sum I realise but it is significant over a month/year.

Can you tell me if this is correct? Is Would I definitely pay tax if my waged income was exactly £100.00 (already subject to Tax and NI ) and then I would have the carers allowance on top at £53.90? A local carers office had initially told me that I wouldn't pay tax so I just really need this clarifying.

I would appreciate any help or advice.

Thank you in advance.

Sandra

sandra45

Thanks very much for the information. I will go to websites/links you both suggest. Really appreciate the replies and info.

Thanks

Sandra