Carers allowance - allowable expenses.

housebuyer143

Can you let me know if petrol to your usual place of work and car parking when I get there can be used as an expense to bring my earnings down?

Also, 50% of pension contributions can be deducted. Can I pay money into my own personal pension outside my work to bring it down, is this allowed and how do I prove I am doing this each week when I put the claim in as my payslip will be slightly over. 

Advice please.

Alice_Holt

No, I don't believe these expenses are allowable.
Unlike business travel in the course of work (if not reimbursed by your employee).  

50% of personal pension contributions would be allowable, you would need to notify CA of these and (I imagine) supply bank / pension statements as evidence.

spaniel101

As Alice_Holt says, I don't believe you can claim expenses purely related to simply your 'work commute' per say, only if they are incurred 'wholly and exclusively for the purposes of the business'.


Pension contributions, yes you can pay into a seperate personal pension/SIPP  (I do this).   You must tell them to begin with what expenses you are claiming be disregarded.   Once approved and CA in payment, every so often (once a year or so) they will suspend your CA payments and randomly ask you for evidence.   


I have a spreadsheet evidencing monthly Gross/Tax/NI/Total Pension (including my employment pension contributions & SIPP contributions) and Childcare costs.   I send this bundle along with a covering letter (with national insurance number at the top of each sheet and signed) and they usually unsuspend your CA payments again.


Tax and benefits for carers | Low Incomes Tax Reform Group (litrg.org.uk)

Carer's Allowance 2023-24 (carersuk.org)    (Page 7 onwards)

housebuyer143

spaniel101 said:

As Alice_Holt says, I don't believe you can claim expenses purely related to simply your 'work commute' per say, only if they are incurred 'wholly and exclusively for the purposes of the business'.


Pension contributions, yes you can pay into a seperate personal pension/SIPP  (I do this).   You must tell them to begin with what expenses you are claiming be disregarded.   Once approved and CA in payment, every so often (once a year or so) they will suspend your CA payments and randomly ask you for evidence.   


I have a spreadsheet evidencing monthly Gross/Tax/NI/Total Pension (including my employment pension contributions & SIPP contributions) and Childcare costs.   I send this bundle along with a covering letter (with national insurance number at the top of each sheet and signed) and they usually unsuspend your CA payments again.


Tax and benefits for carers | Low Incomes Tax Reform Group (litrg.org.uk)

Carer's Allowance 2023-24 (carersuk.org)    (Page 7 onwards)

@spaniel101 This is super helpful. Are you putting in the pension contributions weekly or monthly? I get paid monthly. 

spaniel101

Paid at the end of each month 27th, SIPP contributions (Gross in the month it is made - i.e. you pay in £80 and HMRC add 25% tax relief directly to the SIPP automatically) taken via direct debit from current account the following 7th.  So you declare the full 'Gross' amount i.e. on the 7th  (including the tax reflief - no matter when HMRC actually add the tax relief to your SIPP). 

spaniel101

Forgot to add also in the bundle I evidence to them, are my Payslips (for the period in question), P60's and SIPP Pension Contribution Statement  (which are usually easily found in Gross transactions on your SIPP online account).   They don't usually ask for bank statements as all the above evidences exactly what they need.

spaniel101

In terms of the Thresholds, they will base all your calculations on 'Monthly' - because you are 'Monthly' paid  (not weekly / 4 weekly = averaged out).

housebuyer143

Thank you so much, that's really cleared it up. They don't make it easy do they ha ha. 
I'll remember to keep track of everything for when they inevitably ask 😃

Alice_Holt

housebuyer143 said:

Thank you so much, that's really cleared it up. They don't make it easy do they ha ha. 
I'll remember to keep track of everything for when they inevitably ask 😃

     I'd strongly suggest letting CA know now of your Personal pension contributions.

     When they are aware that your net earnings are above the earnings limit, they will stop CA /  try to recover CA payments for that month.  This is much much more hassle to unpick and rectify, than keeping them updated of your circumstances promptly and regularly.  Be sure to keep all correspondence with CA.

housebuyer143

Alice_Holt said:

housebuyer143 said:

Thank you so much, that's really cleared it up. They don't make it easy do they ha ha. 
I'll remember to keep track of everything for when they inevitably ask 😃

     I'd strongly suggest letting CA know now of your Personal pension contributions.

     When they are aware that your net earnings are above the earnings limit, they will stop CA /  try to recover CA payments for that month.  This is much much more hassle to unpick and rectify, than keeping them updated of your circumstances promptly and regularly.  Be sure to keep all correspondence with CA.

Thanks, I am due to apply in Oct as I have a new job but it takes me £4 a week over so I am thinking of how to get it under. I will pay into the pension as above and let carers know when I apply. 
Alternatively I can set yet another workplace pension up on top of my defined benefit one and pay it from my wages, but I would probably prefer not to do this.