Carers Allowance and Expenses

BeepBeep22

Hi

My wife receives carers allowance (not UC). She has started a job that is two hours a week, which pays £40 hour - this is self employment, she is not classed as an employee. On top of this she receives £20 a week to cover her expenses (travel costs, provision of materials etc). 

My question is: does this reimbursement of expenses count as 'income' for the purposes of the earnings limit for CA?

wakeupalarm

One of the conditions for receiving carer's allowance is that you must not earn more than £139 a week (in 2023/24). This includes money from employment and self-employment, for example, if you have a part-time job. Money you get from a private or occupational pension, however, is not counted as earnings.

Even with £20 a week of expenses she would be below £139 a week.

calcotti

BeepBeep22 said:

My wife receives carers allowance (not UC). She has started a job that is two hours a week, which pays £40 hour - this is self employment, she is not classed as an employee. On top of this she receives £20 a week to cover her expenses (travel costs, provision of materials etc). 

My question is: does this reimbursement of expenses count as 'income' for the purposes of the earnings limit for CA?

As she is self employed the ‘reimbursement’ will be income. However the actual expenses incurred will be deducted to arrive at the self employment earnings.

DullGreyGuy

BeepBeep22 said:

My question is: does this reimbursement of expenses count as 'income' for the purposes of the earnings limit for CA?

Yes, she is running a business and so this is revenue. Her "income" would normally be her "profit" so revenue less allowable expenses.