CA and working

lyniced

My 19 yr old daughter is my carer, and claims CA. She has now got a zero hours contract job, in a shop. She has done 1 week so far, and has worked just 8 hours. The pay is £6.11 an hour, so it's not going to take her above the £100 threshold for CA. Next week she is working 2 days, but 10 hours in total. Anyway, my question is twofold. Firstly, does my daughter need to inform DWP and secondly because her hours are irregular (she's been told she will probably only work 2 days a week, but it could be more or it could be less) her salary will change...how does DWP deal with that?

Thanks in advance!

kingfisherblue

My understanding is that if you receive CA and startt working, even when earning below the £100 a week limit, you are obliged to informthe DWP. It is a change in circumstances and all changes should be reported. Because your daughter is earning less than £100 a week, she won't lose her CA though.

If she does go over the limit, she needs to contct the DWP again and inform them, as she won't be entitled to CA that week. If this is only likely to hapen rarely, she might want to refuse any shifts that will take her over the £100. As she is on a zero hour contract, she does not have to accept all shifts offered.

no-oneknowsme

When I was in receipt of CA I was always told that it was MY responsibility to inform DWP of any weeks were I expected my earnings to be above the threshold for claiming CA.

I also know that DWP wrote to my employer on a regular basis asking them to confirm my earnings .

As long as your Daughter stays below the threshold then there shouldnt be a problem. I wouldnt imagine that your Daughter will have to inform them of her earnings week to week as long as they dont rise above the allowed amount.

Your Daughter should however have already informed DWP that she is working.

rogerblack

The limit is not 100 pounds.
It's 100 pounds after income tax, some NI contributions, half of your personal pension contributions, and expenses 'wholly and unavoidably incurred at work'.
In some cases, you can deduct also the cost of getting someone to look after the person you're claiming CA for.
It's worth looking into if any of this can make a difference.

krisskross

Is CA a taxable benefit?

If it is then anyone working and claiming it must be sure that their tax code reflects the benefit otherwise an underpayment of income tax could result.

epitome

you must inform DWP of the work.

kingfisherblue

krisskross wrote: »

Is CA a taxable benefit?

If it is then anyone working and claiming it must be sure that their tax code reflects the benefit otherwise an underpayment of income tax could result.

Yes, CA is a taxable benefit.

lyniced

Ok, thanks for that. She will ring on Monday. As far as I'm aware she doesn't earn enough to pay tax. Will she pay NI?

krisskross

lyniced wrote: »

Ok, thanks for that. She will ring on Monday. As far as I'm aware she doesn't earn enough to pay tax. Will she pay NI?

Her wages and carers allowance together could mean she has a tax liability.

lyniced

Also, forgot to mention she also gets income support, so will that be stopped?

epitome

She needs to inform Income Support

who will not stop her claim unless she works 16 hours or more. They will deduct her wages from her Income Support