Carers Allowance Overpayment when Self Employed

boyzmummy

Hi, I could really do with some help and advice please. 

I have been self employed for around 7 years working part time whilst caring for my disabled teenager. I have claimed carers allowance for approximately 12 years, as my earnings have always been below the LEL I have never worried about exceeding any limits, live a pretty simple life so didn’t claim any other benefits. DWP have stated that during the tax year 21-22 I exceeded the earnings limit by £624 so have to pay back all of the CA for the year 22-23 which is a staggering £3641. To top it off they have removed the NI credits for 22-23 so for the past 4 months since I got sick, I have not been able to claim any SSP, I have now used all my savings up on living expenses and am desperate. 

I read somewhere that I could contribute to a pension, only problem is that my only pension is a frozen works pension, I quit my job when my child was born to look after him as his father couldn’t cope with a child with problems and left us. 

Has anyone faced anything similar please, it seems so unfair- thank you 

Dazed_and_C0nfused

It's very unusual to have a "frozen" pension, I suspect you mean something else.

Even someone with no earnings from employment or self employment can contribute to a pension and get tax relief (£2,880 which is grossed up to £3,600 with tax relief).

But you can never back date pension contributions so that will be of no help to you for 2021-22 (or any other tax year that has already ended).

huckster

""DWP have stated that during the tax year 21-22 I exceeded the earnings limit by £624""

Is this true ?  Have you looked at your accounts for this period ?  Have you raised a dispute with DWP ?

Have you approached benefits advice service like Citizens Advice for help ?

Brie

Dazed_and_C0nfused said:

It's very unusual to have a "frozen" pension, I suspect you mean something else.

Even someone with no earnings from employment or self employment can contribute to a pension and get tax relief (£2,880 which is grossed up to £3,600 with tax relief).

But you can never back date pension contributions so that will be of no help to you for 2022-23 (or any other tax year that has already ended).

I suspect the OP mean a deferred pension.

As for back dating pension contributions I think this refers to paying extra to gain that year's NI contributions so that she is credited for state pension for the year as that would normally be covered by getting carer's allowance.

boyzmummy

Hi, yes sorry I do probably mean a deferred pension. So I cannot backdate this to 21-22 year so that idea will not help me anyway but thank you anyway. 

I asked DWP for a mandatory reconsideration and they have confirmed that the payment plus £50 civil penalty still stands and I have 1 month to appeal.  My earnings net for the year was £7526.30  and for carers allowance I had only supposed to earn £6864, my earnings fluctuate weekly so it is hard to predict. 

Thank you all for your advice and replies 

Danien

You need to get specialist advice from a citizens advice or welfare rights organisation. There are certain allowances and costs that can be deducted from self employed earnings and a specialist adviser will be able to tell you whether all allowances have been taken account of and help you to appeal. Get an appointment immediately and in the meantime make an appeal explaining that you are getting advice and will send in a more detailed submission once the adviser has looked at your case. Good luck.