Redundancy, Carers Allowance, sickness benefit, JSA or P50?

CHIHUAHUA
CHIHUAHUA Posts: 214 Forumite
edited 26 November 2011 at 12:12PM in Redundancy & redundancy planning
Hi

Sadly I've been made redundant by the NHS after 26yrs as a nurse. My last day of service is 12/12/11 but I'm on annual leave now till then.
My question is about what to do next:

I will be more or less a full time carer to start with as my f-in-law is coming home from a nursing home and needs 24hr care so will have a care package but generally I'll be looking after him and will meet the rules for claiming carers allowance.

I'll be looking to go back into the NHS if poss or private health sector on a p/t basis in the new year but wonder if I should claim JSA in the meantime to maintain NI conts.

I will also be going into hospital in the new year for 2 operations which would have meant being sick for a few weeks if I were still at work and am unsure how to clam sickness benefit.

Lastly I've read here that it may be worth not claiming JSA and completeing a P50 as will probably be overtaxed on my redundancy payment which will be in the region of 80K before tax (2 years wages) - this sounds great but would much rather have my old job and pension.

Please advise as I'm confused!
Thanks for your help
Chihuahua

Comments

  • getmore4less
    getmore4less Posts: 46,882
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    The P50 is just to get the tax back quicker you get it back anyway.

    Any jobs going in the service that will be providing the home based care, if that is NHS unless there are rules stopping you caring for relatives that might be a solution especialy if it is NHS(allthough there may be clawback).

    Might also be worth looking at what options there are for topping up the pension with some of the redunancy.
  • Thanks for your quick reply.
    I wasn't aware that it was possible to top up an NHS pension?
    I have 26 years service which equates to 32 years for NHS pension purposes so am now 8 years from a full pension rather than 4 if I had been redeployed. I will check this with the pensions dept.

    I am not intending to become a paid worker as part of my f-in-laws care package - I hope to get a p/t job back in mental health and also look after him.

    If I don't complete a P50 when would I get any overpaid tax back?
    I understand that if I complete a P50 i can't claim JSA as it is taxable.
    I am concerned about maintaining NI contributions.

    Should I apply JSA and carers allowance at the same time? or should I just claim carers allowance?
    I understand that I can claim cont based JSA for a few months.

    Sorry for all the questions
    Thanks for any advice
    Chihuahua
  • getmore4less
    getmore4less Posts: 46,882
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    edited 26 November 2011 at 3:08PM
    I think once you get the p45 back from the P50 claim you can then change your mind and claim JSA or start work.

    But there is only 3 months so it would probably take most of that time to get the P45 back.

    tax rebate would take a while but you can get the return in quickly P50 is probably the best route.

    I would look at p50 and claim JSA from April 6
    Take a break to settle into the care role and keep on top of the community care provided.

    Remember the service will try to screw you because you are available so be carefull.

    It is a while since I looked at the NHS pension(old one?) but I think you can still buy some pension, so with some of the redundancy at 40% tax it might be worth while looking into.
    Not sure how you get 26y service is 32 pension years is that something to do with moving to the new pension.


    how much NI do you have only need 30y for full state pension.

    Don't you get NI credit on carers looks like you do
    http://www.direct.gov.uk/en/CaringForSomeone/MoneyMatters/DG_10012529


    edit: can you claim carers and JSA together
  • merlin68
    merlin68 Posts: 2,405 Forumite
    I didn't think you could claim jsa and carers at the same time, you normally claim carers then get an income support top up, which you claim seperate. His he getting dla or attendance allowance as his been in a nursing home. As he would have to be on middle rate care in order for you to get carers and you can't get the care componenet if your in a home normally.
  • Watch your tax position on that £80k. The first £30k is tax free, but the rest is taxed at your marginal rate which judging by your post the majority will be at 40%. Consider paying as much of the £50k as you can afford into a SIPP so it goes in tax-free but only attracts 20% tax when you eventually draw your pension (any available pension lump sum is tax free as a bonus).
  • CHIHUAHUA wrote: »
    Hi



    I will be more or less a full time carer to start with as my f-in-law is coming home from a nursing home and needs 24hr care so will have a care package but generally I'll be looking after him and will meet the rules for claiming carers allowance.

    Will your father in law be living alone or with someone else? If alone, then you claiming carers allowance could affect his benefits under certain (complicated!) circumstances.
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