Carer's allowance, my wages has increased and I'm £1.15 per week over so might lose CA, plus bonus

joe565

Carer's allowance earning allowance has went up to £139 per week and my wages slightly increased and I've just noticed I'm £1.15 per week over the £139 allowance.
I've already deducted the 50% pension contribution and previous expenses allowed ie clothes/laundry was £9.16 per week and I'm hoping maybe this expense has increased?

Also, I got a yearly bonus from work of £575 and I will inform CA now so does this mean they stop my payments now?

So worried and it's frustrating that I'm £1.15 per week over my earning limit (unless the clothes/laundry expenses of £9.16 has increased since my claim 4 years ago)  maybe it has and I will be ok now, although I've received an extra yearly bonus of £575 and not sure how the bonus works?

MalMonroe

This is what Citizens Advice says -

"Tell the DWP as soon as you know about a change that might affect your Carer's Allowance. For example, tell them if:

• you stop caring for the disabled person - this includes if a child you were caring for stops living with you

• you start earning more money

You won't save money by reporting it later. If you tell the DWP late you could get paid too much and have to pay your benefits back to the DWP."

A couple of years ago my niece was in receipt of carers allowance as she looked after her dad and had to report each and every change of circumstance, no matter how small. 

If you notify DWP, they'll let you know what, if anything, will happen. It's better than worrying and always better to be safe than sorry.

Alice_Holt

I'd suggest increasing your pension contribution to get you comfortably under the CA earnings limit.
Or, if possible reducing your hours slightly.
Even a few pence over the limit will end your CA for that week.

The bonus will cause you to lose CA for the period in which it is paid - are you paid weekly or monthly?

[Deleted User]

Unless the rules have changed you can make certain deductions to bring the income down to qualify

• Income tax and National Insurance contributions (NIC)
• Half of any contributions that you make into a work or personal pension
• Certain business expenses that you as an employee pay for but your employer does not reimburse. Such an expense must, as for income tax purposes, be incurred in the performance of the duties of the employment and be wholly, exclusively and necessarily incurred. For example special tools and clothing, professional fees and subscription, telephone calls made entirely for work purposes, business mileage or other work related travel expenses and any associated subsistence costs (if you use your own car business mileage can be deducted, some costs of working from home
• You can also take off up to half of your earnings (after the above deductions if they apply) for amounts you pay to someone to look after either a child under 16 who you or your partner get child benefit for, or the person you are the carer for, when you are at work (so long as you pay someone other than a close relative).
  

joe565

Alice_Holt said:

I'd suggest increasing your pension contribution to get you comfortably under the CA earnings limit.
Or, if possible reducing your hours slightly.
Even a few pence over the limit will end your CA for that week.

The bonus will cause you to lose CA for the period in which it is paid - are you paid weekly or monthly?

I get paid monthly so that does mean I will lose the equilavent of the CA  to the amount of of the bonus received?

Alice_Holt

joe565 said:

Alice_Holt said:

I'd suggest increasing your pension contribution to get you comfortably under the CA earnings limit.
Or, if possible reducing your hours slightly.
Even a few pence over the limit will end your CA for that week.

The bonus will cause you to lose CA for the period in which it is paid - are you paid weekly or monthly?

I get paid monthly so that does mean I will lose the equilavent of the CA  to the amount of of the bonus received?

      Unfortunately you will lose all CA payments for that period, as your weekly earnings (averaged over that month) will be more than the earnings limit.
Even If you are only a few pence above the limit your entire CA will stop.

    CA is only payable when earnings are below the earnings limit.  Hence the suggestion to increase your pension contribution to get you comfortably under the CA earnings limit for the ongoing £1.15 a week problem.  
   

joe565

Alice_Holt said:

joe565 said:

Alice_Holt said:

I'd suggest increasing your pension contribution to get you comfortably under the CA earnings limit.
Or, if possible reducing your hours slightly.
Even a few pence over the limit will end your CA for that week.

The bonus will cause you to lose CA for the period in which it is paid - are you paid weekly or monthly?

I get paid monthly so that does mean I will lose the equilavent of the CA  to the amount of of the bonus received?

      Unfortunately you will lose all CA payments for that period, as your weekly earnings (averaged over that month) will be more than the earnings limit.
Even If you are only a few pence above the limit your entire CA will stop.

    CA is only payable when earnings are below the earnings limit.  Hence the suggestion to increase your pension contribution to get you comfortably under the CA earnings limit for the ongoing £1.15 a week problem.  
   

I rang the pension company and they said I can't increase my pension

bizzie

Could you look to opening up a SIPP, to run in parallel with your existing pension, if they are unable to increase your contributions in order to meet the CA financial requirements?
Pension board have threads/discussions about available providers - I believe funds can be kept as cash rather than invested

joe565

bizzie said:

Could you look to opening up a SIPP, to run in parallel with your existing pension, if they are unable to increase your contributions in order to meet the CA financial requirements?
Pension board have threads/discussions about available providers - I believe funds can be kept as cash rather than invested

Thanks so much for this.  On the CA website it says the following re an expense

• half of any money you pay towards personal or occupational pension schemes

therefore I'm wondering will they also allow half of a personal pension along with half of my work pension as an expense? ie 2 pensions?

Alice_Holt

joe565 said:

bizzie said:

Could you look to opening up a SIPP, to run in parallel with your existing pension, if they are unable to increase your contributions in order to meet the CA financial requirements?
Pension board have threads/discussions about available providers - I believe funds can be kept as cash rather than invested

 On the CA website it says the following re an expense

• half of any money you pay towards personal or occupational pension schemes

therefore I'm wondering will they also allow half of a personal pension along with half of my work pension as an expense? ie 2 pensions?

     Yes. As the Cit A website indicates both are deductible for CA. 


   However, it would be much easier if you could just increase your contribution into your current scheme. Most schemes will allow this, so I'm surprised yours doesn't.  Is it an auto-enrolment scheme?  Have you checked the scheme documentation to see if the advice given was correct. Who told you this - the pension administers or your employer? 

  Difficultly with a personal person / SIpp is the charges, often a minimum amount required, and getting the documentation / proof to CA for them to calculate and apply the 50% deduction.

  You can post details of your current scheme on the Pension board, and ask about increasing contributions. 

joe565

Alice_Holt said:

joe565 said:

bizzie said:

Could you look to opening up a SIPP, to run in parallel with your existing pension, if they are unable to increase your contributions in order to meet the CA financial requirements?
Pension board have threads/discussions about available providers - I believe funds can be kept as cash rather than invested

 On the CA website it says the following re an expense

• half of any money you pay towards personal or occupational pension schemes

therefore I'm wondering will they also allow half of a personal pension along with half of my work pension as an expense? ie 2 pensions?

     Yes. As the Cit A website indicates both are deductible for CA. 


   However, it would be much easier if you could just increase your contribution into your current scheme. Most schemes will allow this, so I'm surprised yours doesn't.  Is it an auto-enrolment scheme?  Have you checked the scheme documentation to see if the advice given was correct. Who told you this - the pension administers or your employer? 

  Difficultly with a personal person / SIpp is the charges, often a minimum amount required, and getting the documentation / proof to CA for them to calculate and apply the 50% deduction.

  You can post details of your current scheme on the Pension board, and ask about increasing contributions. 

I contacted the Pension company and was told can't contribute - only option given was to do an Additional Pension Purchase but said wouldn't be weekly and be just like a lumpsum.