Do 'earnings-replacement' taxable benefits count as earnings for 25% extra on Pension payments?

RedMonty

So I found that I got paid two years worth of a particular taxable benefit in one year, putting me 4K over the tax-free annual allowance. It creates a problem which I might be able to resolve by making a lump sum payment into my pension by this Monday (eek!) before the end of financial year.

This benefit (Carer's Allowance for looking after my disabled kid) is taxable so I declare it on my Self-Assessment form each year. I'm a bit cheesed off, as last year I was under the taxable allowance, and if it had been paid to me on time I wouldn't have needed to pay tax on it. Now because it's been paid late, I have to pay tax on it.

Possible solution: Make an £4K payment into my SIPP pension, which means that £4k won't get counted as income & save on the tax plus I get a 25% pension bonus, plus my Tax Credits go up. Win! I have to do this on Monday so it counts within this financial year.

PROBLEM: I don't know if this taxable benefit (Carer's Allowance) counts as 'earnings' for making payments into pension. This is important because if it's not 'earnings' then I can't get the 25% pension bonus. It's only available for pension payments up to 100% of 'earnings' (excludes unearned income, including all untaxed benefits).

My theory is: Carer's Allowance is taxable (in my mind) because I work looking after my disabled kid, hence it should count as 'earnings' for making pension payments. Govt website says it is an 'earnings-replacement' benefit for people who spend at least 35 hours per week caring for someone who has a disability. In other words, if you don't do the work of caring, you don't get Carer's Allowance. That all points to it being eligible as 'earnings'.  But I don't know for sure. I have searched and searched and not been able to find an answer. 

What do you think?  

(I don't have much other qualifying 'earnings' apart from Carer's Allowance. Have already maxed out the £3600 low earner pension contribution allowance. Too old for LISA. Not on UC.)

Dazed_and_C0nfused

See your other post, irrespective of whether Carers Allowance are pensionable earnings or not a SIPP contributions doesn't reduce your taxable income.

RedMonty

Dazed_and_C0nfused said:

See your other post, irrespective of whether Carers Allowance are pensionable earnings or not a SIPP contributions doesn't reduce your taxable income.

Thanks yes that's right. I made a mistake in my wording. 

I was uncertain if the post belonged in the Tax forum or the Pension forum and ended up posting in both. The Tax forum has a strong discussion about my post & any interested readers can find it here at https://forums.moneysavingexpert.com/discussion/comment/79103555

The answer to the question I asked in my Pensions forum post above:   

Earnings-replacement / taxable benefits do NOT count as earnings for setting max payment into personal pension & still get 25% extra bonus.