Mum to become nan full time carer

JustTakeAllMyMoney

Hi,

My nan has got the point she needs a full time carer or go into a home, she told my mum that if she retires to care for her she will pay her the same salary she earnt, which was about £1100 a month gross.

We really have no idea about the whole tax situation of such an arrangement and wondered if someone could shed some light on it . Would there have to be an employer and employee setup between my nan and mum what are the tax implications is there anything special for carers like this ? I read they get some allowance a week but its my nan paying my mum we arent sure about ?
thanks

sleepless_saver

More info needed before we can help much!

How old is your mum, and your nan? Does your nan get attendance allowance? Does she live alone? Does your mum have a partner and does the partner have an income? Has your nan been assessed as needing care?

All of these things will affect the possible options they have for arranging care.

For your immediate question, to get carers allowance (about £55 a week) your mother would need to earn less than about £100 a week, care for your gran for at least 35 hours a week and not be in receipt of certain benefits. And your nan would need to be getting attendance allowance. If your nan is getting pension credit (unlikely if she is able to pay £1100 a month but not impossible) then your mother claiming carers allowance would reduce your nan's benefits.

Link to info about employing someone.

Savvy_Sue

It's not something to be undertaken lightly, IMO. Does nan need care 24/7, and is she expecting Mum to do this for £1100 pm? Would it be better to have a non-family member and preserve the mother daughter relationship? What about when Mum's ill? What if Nan needs more care - if not now then in the future - than Mum can sensibly give?

The link will tell you more, and oh, if Mum is employed, what will nan do when Mum takes her paid holiday (to which she has a legal entitlement)?

John_Pierpoint

There are still some women out there who believe it is their daughter's duty to care for them in their old age.
Like their mother's did for grandmother - after all women only work for pin money don't they?

The other choice is to buy in agency care (the minimum wage, compulsory holidays PAYE & NI, employer's liability and working hours directive, make it "impossible" to employ someone directly; they tend to be self employed).

The third choice is a care home.

Of course choices 2 & 3 can always be used on a "respite" basis.