Carers and tax

noclaf

Hi all, 
I am a carer for an elderly parent with dementia, live in parents property. Whilst carers do visit daily I fulfil the carer role for the remainder/majority of the time. That includes meals, medical appointments, house upkeep and I am also a deputy for the parent appointed via CoP. I am a higher rate tax payer and work full time.
It's just my mother and I who reside in the property. I am not eligible for carers allowance but do get a small cash sum from LA each month paid direct to my bank account...it's not carers allowance but goes by some other name and is simply for me to use on something that will help me given my carer role.
For council tax, my mother was given a SMI disregard a few years back. The LA then proceeded to make me "lead" on the council tax(per the wording of their letter), I receive a net 50% reduction on council tax. I am not a home owner, the house we live in only has father/mother on the deeds.
Qu 1: is there such a scenario where a carer is disregarded for council tax completely or is this income/financial assessment based? I've tried to research and find information online vague or conflicting. Edit: I've since clarified that the council tax is a "double disregard" due to me being a carer and mum being SMI so I assume the 50% overall council tax reduction reflects this.
2: I am a higher rate tax payer but all via paye with employer, I have never completed a self assessed tax return as assumed didn't need one. Given that I also receive funds into my bank a/c for both my allowance from LA and funds from my mother to be used to pay her monthly care costs is there any benefit to using a self assessed tax return?
Qu.3 not tax related so maybe wrong section but apart from mum's bank, who else do I/should I inform about being appointed her deputy?
Thanks

Keep_pedalling

Have you claimed attendance allowance for your mother? 

Q1. No

Q2. You will have to be specific with regards to what that payment from the LA is. As for transferring money from your mother’s account that is not something that is taxable, but having been in a similar situation I would recommend you don’t do that. Use her account to pay for anything that is for her use. Keep the finances separate it will make it easier for  you to do the annual financial report required by deputies.

Q3. It is important that your inform the LA, and her GP. I would also inform the DWP, and any of her utility suppliers.

noclaf

My mother does receive attendance allowance.
To clarify re payment from the LA, it's called a "personal budget package", that's how the LA describes it. I use it to cover my gym membership. So when I joined my gym I provided evidence of the membership and cost/DD to LA who then base the personal budget on the cost of my gym membership.
Thanks, didn't think of those but quite obvious ones. I will let the dwp and GP know. For utilities I pay all the bills in the household, do they still need to be made aware?

Keep_pedalling

noclaf said:

My mother does receive attendance allowance.
To clarify re payment from the LA, it's called a "personal budget package", that's how the LA describes it. I use it to cover my gym membership. So when I joined my gym I provided evidence of the membership and cost/DD to LA who then base the personal budget on the cost of my gym membership.
Thanks, didn't think of those but quite obvious ones. I will let the dwp and GP know. For utilities I pay all the bills in the household, do they still need to be made aware?

I had to look personal budgets up, but it appears they are not taxable, so no need to cover them via self assessment.

https://www.alzheimers.org.uk/get-support/legal-financial/personal-budget-support-FAQs

As you have all the utilities in your name there is no need to inform them of your deputyship. 

molerat

Q1.  According to this you both have been disregarded so the house is empty and subject to 50% council tax according to your council's empty home policy.

https://www.alzheimers.org.uk/get-support/legal-financial/discounts-disregards-exemptions-council-tax

noclaf

Thanks Molerat, now make sense.The way the information is set out could be better but having read through both "empty properties" and the carers disregard this aligns to how my council have calculated the council tax on our property.

CIS

For council tax, my mother was given a SMI disregard a few years back. The LA then proceeded to make me "lead" on the council tax(per the wording of their letter), I receive a net 50% reduction on council tax. I am not a home owner, the house we live in only has father/mother on the deeds.

You are not liable unless you are a joint owner or tenant - if your mother owns the property and you just live with her then you are not liable for the council tax charge and the liability has been attributed in error (which is surprisingly common - I see several cases a year with my clients as I deal with council tax & disputes as my job). This error can cause severe issues for council tax purposes.

Qu 1: is there such a scenario where a carer is disregarded for council tax completely or is this income/financial assessment based? I've tried to research and find information online vague or conflicting. Edit: I've since clarified that the council tax is a "double disregard" due to me being a carer and mum being SMI so I assume the 50% overall council tax reduction reflects this.

The maximum disregard is 50% where all of the adults are disregarded. I would add that the 'empty homes' policy of the council above isn't applicable - the property is not 'empty' it is simply occupied only by disregarded parties, a different issue (it doesn't appear that the person who wrote that page fully understands council tax, another pet hate of mine).

noclaf

Hi CIS,
sorry for the late response just seen your post above.
I've checked my latest council tax bill and under details of charge for your property it says following:
"Less 50% discount as all occupiers are disregarded 01.04.2020 to 31.03.2021".
Re whether I am a tenant, it depends on how you define tenant. Ive lived in the property all my life though only my parents are listed on deeds as they are the only owners. I don't pay rent but I pay all the bills in the house. I use my mother's pensions/AA to pay her monthly care costs and any expenses.
If I cannot be listed as a lead on the council tax then how else can the council tax be paid? Also would my annual income have any bearing on the council tax I pay? Surely if I earn a certain amount I must pay council tax or is this only relevant for the homeowner(s)?
 I will raise this with the council just to ensure all is correct.

xylophone

Ive lived in the property all my life though only my parents are listed on deeds as they are the only owners.

Your father lives elsewhere?https://www.alzheimers.org.uk/get-support/legal-financial/discounts-disregards-exemptions-council-tax

Peter has Alzheimer’s disease and is disregarded for council tax purposes under the severe mental impairment rules. He lives in a house with Jo, his daughter. Jo is also disregarded for council tax purposes because she is recognised by the local authority as his carer (see the first group of criteria above). Therefore, because both Peter and Jo are disregarded, this property is being treated as if it is empty under council tax rules. This means they are eligible for a reduced council tax bill – see ‘Empty properties’.

noclaf

xylophone said:

Ive lived in the property all my life though only my parents are listed on deeds as they are the only owners.

Your father lives elsewhere?https://www.alzheimers.org.uk/get-support/legal-financial/discounts-disregards-exemptions-council-tax

Peter has Alzheimer’s disease and is disregarded for council tax purposes under the severe mental impairment rules. He lives in a house with Jo, his daughter. Jo is also disregarded for council tax purposes because she is recognised by the local authority as his carer (see the first group of criteria above). Therefore, because both Peter and Jo are disregarded, this property is being treated as if it is empty under council tax rules. This means they are eligible for a reduced council tax bill – see ‘Empty properties’.

My father is in a nursing home, the last time he lived in the house was more than 25 years back. So just my mother and I mainly since they bought the house. 
Based on the 50% council tax reduction it seems like we are both disregarded/property is treated as if empty. Unless I've got it wrong.

CIS

noclaf said:

xylophone said:

Ive lived in the property all my life though only my parents are listed on deeds as they are the only owners.

Your father lives elsewhere?https://www.alzheimers.org.uk/get-support/legal-financial/discounts-disregards-exemptions-council-tax

Peter has Alzheimer’s disease and is disregarded for council tax purposes under the severe mental impairment rules. He lives in a house with Jo, his daughter. Jo is also disregarded for council tax purposes because she is recognised by the local authority as his carer (see the first group of criteria above). Therefore, because both Peter and Jo are disregarded, this property is being treated as if it is empty under council tax rules. This means they are eligible for a reduced council tax bill – see ‘Empty properties’.

My father is in a nursing home, the last time he lived in the house was more than 25 years back. So just my mother and I mainly since they bought the house. 
Based on the 50% council tax reduction it seems like we are both disregarded/property is treated as if empty. Unless I've got it wrong.

Both disregarded but the property is still occupied for council tax purposes. The wording in that link is very badly written in that respect, being empty is an entirely difference issue for council tax purposes.