carers allowance & tax credits

jim-jim

Firstly I would like to say thank you for the advice on my previous question.

My son is 4 and now gets middle rate dla, mobility to be added when he reaches 5. We also now get the disability element for tax credits.

This is where I need the advice, how does the cares allowance affect your tax credits. We only get child element, I have been on benefit checkers and cant work it out.

Because tax credits are complicated enough I didn't want to claim for this and they say we have been over paid, or they reduce the claim for the same amount.

So in a nut shell. How does it effect your claim?

Many thanks x

mummyroysof3

I guess it would depend on other income etc...every claim is different. When my son Started getting dla and I claimed carers allowance I rang them up and told them. Our monthly ammount went up due to dla.

nannytone_2

carers allowance is taxable and has to be declared as income for tax credit purposes

controversy

jim-jim wrote: »

Firstly I would like to say thank you for the advice on my previous question.

My son is 4 and now gets middle rate dla, mobility to be added when he reaches 5. We also now get the disability element for tax credits.

This is where I need the advice, how does the cares allowance affect your tax credits. We only get child element, I have been on benefit checkers and cant work it out.

Because tax credits are complicated enough I didn't want to claim for this and they say we have been over paid, or they reduce the claim for the same amount.

So in a nut shell. How does it effect your claim?

Many thanks x

Put it in your entitled to benefit calculator?

http://www.entitledto.co.uk/

densol_2

jim-jim wrote: »

Firstly I would like to say thank you for the advice on my previous question.

My son is 4 and now gets middle rate dla, mobility to be added when he reaches 5. We also now get the disability element for tax credits.

This is where I need the advice, how does the cares allowance affect your tax credits. We only get child element, I have been on benefit checkers and cant work it out.

Because tax credits are complicated enough I didn't want to claim for this and they say we have been over paid, or they reduce the claim for the same amount.

So in a nut shell. How does it effect your claim?

Many thanks x

Its going to add £62 a week - just over £3000 pa to the family income that is taken into account for tax credits. As you only get the child element not WTC - if it takes your income to more than £16,000 odd then it will start to decrease the child tax credits payment. Have a look at the child tax credit calculator and remember it only shows the pro rata amount until 5/4/2016.... Not a whole years worth so you need to multiply up to get a full year.

Darksparkle

If on income based benefits; Income Support, JSA, ESA or PC then carers would have no impact on your claim, although still needs to be declared.

nannytone_2

Darksparkle wrote: »

If on income based benefits; Income Support, JSA, ESA or PC then carers would have no impact on your claim, although still needs to be declared.

of course it would have an impact on the claim!
the full amount of carers allowance would be deducted from the income related benefit and a carers premium added.
a net gain of around £34 a week for the claimant