Carers Allowance earnings limit concerning Bond and Self-Employment income

starblade

Hi, my wife receives Carers Allowance for our DD. She has the opportunity to invest in a private company, specifically buying bonds, from personal savings. The return on these bonds means an interest payment to her of £1500 a year. I can't seem to find any definitive answer regarding investment interest income and how it counts towards her £128 per week earnings limit.

My question is, would it be considered a one-off payment of £1500 for that week and lose that week's CA payment, and a return to CA the following week?

Or would the income be averaged over the year (£28.85 per week), effectively leaving about £100 'spare' a week?

My second question is, in the longer term, my wife intends on replacing CA with a self-employed income whilst continuing her caring duties. As self employment income will fluctuate above and below the CA earnings limit in the early stages of the business, are earnings averaged over a time period and not week-to-week. i.e. what is that time period?

The reason I ask is that my wife is trying create an independent income around the caring responsibilities (during school hours) then eventually transition to self-employment, but we don't want to make any mistakes or struggle financially though the transitional period.

Thanks!

calcotti

Investment income is not earned income and doesn't affect CA.

Self employment income will be assessed based on annual accounts.

Full DWP guidance on earnings is here
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/893673/dmgch15.pdf
Self employed earners are dealt with from paragraph 15470 onwards.

starblade

calcotti said:

Investment income is not earned income and doesn't affect CA.

Self employment income will be assessed based on annual accounts.

Full DWP guidance on earnings is here (link removed).

Self employed earners are dealt with from paragraph 15470 onwards.

Hi calcotti, Thanks for the info. It does seem to be the case that income from investments doesn't affect the CA earnings limit. As for self employment we have emailed the DWP for further clarification.

calcotti

starblade said:
 As for self employment we have emailed the DWP for further clarification.

Don't now what more you expect them to tell you other than what is in the detailed guidance document I referenced. (Also intrigued as to how were able to email them.)