Taxed on benefits ?

Debtworry_2

Hi,

Can anyone clued up tell me if this is right.

Basically my sons mother passed away recently, so my son came to live with me, as he is reg'd disabled i have claimed DLA, child benefit, tax credits and carer's allowance fpr myself. I was and still am on Income Support due to depression, when I received the letter saying I would be getting carer's allowance they said that they have to tax me on my Income support, so instead of getting £90.10 a week, I am only going to be getting £66.25.

So my back payment from November was £764 - £333 (income support paid to me) = £430

Is this right ? Will give them a call tomorrow, but only received the letter yesterday

DX2

Debtworry wrote: »

Hi,

Can anyone clued up tell me if this is right.

Basically my sons mother passed away recently, so my son came to live with me, as he is reg'd disabled i have claimed DLA, child benefit, tax credits and carer's allowance fpr myself. I was and still am on Income Support due to depression, when I received the letter saying I would be getting carer's allowance they said that they have to tax me on my Income support, so instead of getting £90.10 a week, I am only going to be getting £66.25.

So my back payment from November was £764 - £333 (income support paid to me) = £430

Is this right ? Will give them a call tomorrow, but only received the letter yesterday

How do you possibly get £90.10 a week on Income support? ETA: I see you have depression.

£66.25 + £53.90 CA = £120.15

They don't tax your IS they deduct your Carers allowance , then they pay you CA seperatly.

suelees1

Income Support is not taxable but Carers Allowance is. However tax will only be deducted if your annual taxable income has been above the tax threshold for the year. If you've been on IS throughout you should have no tax to pay.

If you do not have a partner and you've been classed as incapable of work for a year or more the law says you need 93.45 to live on. This is personal allowance of 65.45 + disabilty premium of £28. Is this what you get now ?

Once you start getting Carers Allowance the amount the law says you need to live on will increase by the carers premium of 30.05 so the total will be 123.50. They will then deduct the £53.90 Carers Allowance you're paid leaving you with IS of £79.60pw. All in all your IS and CA will still be 135.50.