Increase in personal tax allowance

Plumjam

I have had to ask my manager to decrease the number of hours for which I am paid (although I will still work the hours) as the new personal tax allowance will take me over the earnings threshold for claiming carer's allowance. I am really angry about this. The coalition government say that they are taking thousands of people out of paying any tax and yet they are doing nothing to help carers to increase their take home pay. I can't earn enough to make it worthwhile not claiming carer's allowance as I work in a school so that I'm at home to look after my disabled son during the school holidays (there's no care (let alone affordable care) for a disabled 15 year old around here). So now, I have to work a small amount for nothing - do you think that's what David Cameron means by the 'big society'!

[Deleted User]

the earnings limit for claiming CA is £100 per week,personal tax allowances have been well above that for many years,so i dont see your point tbh?

rogerblack

woodbine wrote: »

the earnings limit for claiming CA is £100 per week,personal tax allowances have been well above that for many years,so i dont see your point tbh?

It's earnings after several things have been taken out.
Tax. NI contributions. Expenses wholly and unavoidably due to work. Half your personal pension contributions.

One can, if one wished, and has savings, earn a thousand pounds a week, and claim CA, if you put nearly twice that into a personal pension.

The personal allowance rising means the OP may pay less tax, which - given the same earnings and expenses, will leave them with more income which is not discountable for CA purposes, and take them over the limit.

paddedjohn

The new tax allowance will only mean an extra £3 or so per week in your wage packet.

rogerblack

http://www.dwp.gov.uk/docs/benefitrates2012.pdf - carers allowance seems to be the only benefit for which the earnings limit did not get raised in line - more or less - with inflation.

Yet another stealth moneysaving measure.

Plumjam

When you have organised your hours to get the most extra income for your family (i.e. as close to £100 as possible), then an extra £3 per week (or £13 per month) is enough to take you over the earnings threshold. I've had dealings with DWP - believe me, they will take away carer's allowance for regularly going over the threshold by a very small amount.
I wrote to Maria Miller last year asking for an increase in the earnings threshold. I pointed out that I didn't want extra money from the government, just the ability to earn more, possibly pay tax and national insurance and definately pay more into my pension (all to the government's advantage and I wouldn't be caring for my son for any less time). Basically, the reply was 'no' with some drivvle about seeking advice re benefits. I intend to write again (and copy in Messrs Cameron, Clegg, Osborne, Milliband, Balls and her counterpart in the opposition) to point our that the government can increase personal tax allowances as much as they like, but it will not benefit carers unless they can earn more. We are statistically 'more likely to be in poverty' than other groups.
I will keep you all posted.

[Deleted User]

i still maintain that because the personal tax allowance has been well above £100 a week for many years then changes are irrelevant for CA
e,g if you earn less than the £100 a week limit then you have been under the personal allowance limit and will remain so for ever more

Plumjam

Carer's allowance is taxable. Add £2888 carer's allowace from last year to £5200 (£100 per week) = £8088. Personal tax allowance was £7475 which leaves £613 to be taxed (£122 over the year). With the new personal tax allowance of £8105 that's an extra £10 per month in take home pay - enough to take me beyond the earnings threshold.
From now on, I will always be earning less that the personal tax allowance. Unless the threshold for earnings is increased, I cannot work any extra hours or take a pay rise (not that there's likely to be one)!

rogerblack

Plumjam wrote: »

From now on, I will always be earning less that the personal tax allowance. Unless the threshold for earnings is increased, I cannot work any extra hours or take a pay rise (not that there's likely to be one)!

You may consider putting away twice the excess earnings in a personal pension, to avoid this.