Does mothers contribution count as income?

KangaRoo

Disabled mother has come to live with us as she's not able to look after herself. If she makes a contribution to the household costs, does this count as income for either my wife or me? This may affect whether we can apply for carers allowance or not.

DomRavioli

It depends on the amount of the contribution, and what the actual contribution is for, amongst other things.

You need to provide actual details.

KangaRoo

I'm aware of the income limit for CA, just wondering what counts as income. One possibility is that she regularly pays her attendance allowance to our joint account, possibly part of the pension too. One necessity of having her here will be greatly increased fuel bills for instance, apart from the costs of increased washing, etc. etc.

So she might make a regular payment in recognition of increased costs, rather than a specific payment for a particular cost.

Would it be better to make specific charges? Seems a bit mercenary to bill her for care/services!

merlin68

Income is any wages over £102 of the person providing the care. It isnt done on household income.
Your making it far too complicated.

KangaRoo

I appreciate your comment, but it is a little more complex than that. If the money coming in is treated as income, then it needs to be apportioned to one or other, or both of us. In one case this would then increase the tax liability, in the other it might prevent CA being claimed. If shared, then it will need to be demonstrated how that apportionment is made, and again would have an impact on CA claim.

So the question is again, is it income, and if not, why not?

Mojisola

If she's paying 'keep' - towards the utility bills, food, etc - it's not income.

I wouldn't have her benefits paid directly into your account. Work out what her share of the bills will be and set up a standing order from her account to yours every month.