Carers Taxable or not

starfish10

Is carers allowance taxable when you care for your own child who lives with you? I am looking at R40 notes and it says under total of other taxable benefits
Carers allowance – include any amount for a dependent adult but ignore any amount for a dependent child.

System

It looks pretty clear that if it is for children then it's not included, no ambiguity there at all

Carers allowance is taxable but it looks as though it is ignored for children when reclaiming tax.

starfish10

Thanks for your reply, Are you sure as I cant seem to find anything about this anywhere else except on notes for filling in short tax return.

System

TBH I can't find anything apart from on the R40 about it being ignored

I know it goes back to 2009 but have a look at post #14 in http://www.consumeractiongroup.co.uk/forum/showthread.php?192921-carers-allowance-taxable

So it looks like going forward you don't include it in an SA

Tigsteroonie

Interesting - that would imply that Carer's Allowance, when claimed for a child, is not a taxable benefit.

And yet it is when you complete the annual Tax Credit submission to the same body ...

Darksparkle

Tigsteroonie wrote: »

Interesting - that would imply that Carer's Allowance, when claimed for a child, is not a taxable benefit.

And yet it is when you complete the annual Tax Credit submission to the same body ...

You also include it in full on the SA return.

It was the old child dependency payment that wasn't taxable. Ended for new claims in 2003.

This doesn't sound like what the R40 is referring to though.

Tigsteroonie

Darksparkle wrote: »

You also include it in full on the SA return.

It was the old child dependency payment that wasn't taxable. Ended for new claims in 2003.

This doesn't sound like what the R40 is referring to though.

That would make sense except - going back to the OP - notes R40 do clearly state under the heading "Total of Other Taxable State Benefits" that "Carer’s Allowance – Include any amount for a dependent adult but ignore any amount for a dependent child".

That really does suggest that CA for a dependent child, in being ignored, is not taxable ...

So why do we declare it for Tax Credits? I'm just trying to understand, as it seems like double standards to me as a lay person!

starfish10

This is why I am worried as I have not included it on past R40s and claimed some tax back on interest

Darksparkle

Tigsteroonie wrote: »

That would make sense except - going back to the OP - notes R40 do clearly state under the heading "Total of Other Taxable State Benefits" that "Carer’s Allowance – Include any amount for a dependent adult but ignore any amount for a dependent child".

That really does suggest that CA for a dependent child, in being ignored, is not taxable ...

So why do we declare it for Tax Credits? I'm just trying to understand, as it seems like double standards to me as a lay person!

Yes but it only seems to apply to the R40. It doesn't say that on the tax return.

Yes it's included for tax credit purposes - http://www.hmrc.gov.uk/manuals/tctmanual/TCTM04402.htm

starfish10

The same statement is on the notes for the short tax return for years 2013 and 2014. but for 2015 they are shorter notes and it is not mentioned??? I am ok for those years as it states clearly doesn't it?

dori2o

Tigsteroonie wrote: »

Interesting - that would imply that Carer's Allowance, when claimed for a child, is not a taxable benefit.

And yet it is when you complete the annual Tax Credit submission to the same body ...

Same body different legislation.