Salary sacrifice and carers allowance

I am claiming carers allowance at the moment.
I am wanting to go back to work and will be hiring a car through a salary sacrifice scheme. This will reduce my already part time hours below the wage for carers £123. I know someone who works with me who does this she states it’s the gross salary they look at so it’s fine. I mentioned it on the phone to the carers allowance people who stated this is not allowed.
I don’t want to rip anyone off I just want to get back to work and this would help me a lot.
Advice anyone?


  • KatrinaWaves
    KatrinaWaves Posts: 2,944 Forumite
    First Anniversary Name Dropper First Post
    it is not listed in the allowed expenses you can deduct, so perhaps your friend at work is confused.

    Calculating your income
    Expenses can include:

    50% of your pension contributions
    equipment you need to do your job, for example specialist clothing
    travel costs between different workplaces that are not paid for by your employer, for example fuel or train fares
    business costs if you’re self-employed, for example a computer you only use for work
    If you pay a carer to look after the disabled person or your children while you work, you can treat care costs that are less than or equal to 50% of your earnings as an expense. The carer must not be your spouse, partner, parent, child or sibling.
  • unforeseen
    unforeseen Posts: 7,278 Forumite
    First Anniversary Name Dropper First Post
    Will the salary sacrifice drop your pay below NMW? If so you can't do it.
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