Mothers Tax

nxdmsandkaskdjaqd

Keep_pedalling said:

Dazed_and_C0nfused said:

You should also check the Carer's Allowance situation.  You can't normally (ever?) receive that amount of State Pension and Carer's Allowance.

Or is whichever tax year you are referring to the first year she got State Pension and she was getting Carer's Allowance prior to that.  In the same tax year?

That could have a double benefit as it might free up some savings starter rate band.

She earns way too much to get CA

All of the following must apply:

• you’re 16 or over
• you spend at least 35 hours a week caring for someone
• you’ve been in England, Scotland or Wales for at least 2 of the last 3 years (this does not apply if you’re a refugee or have humanitarian protection status)
• you normally live in England, Scotland or Wales, or you live abroad as a member of the armed forces (you might still be eligible if you’re moving to or already living in an EEA country or Switzerland)
• you’re not in full-time education
• you’re not studying for 21 hours a week or more
• you’re not subject to immigration control
• your earnings are £151 or less a week after tax, National Insurance and expenses

It was my mistake it's Attendance Allowance.

Bobziz

In which case, attendance allowance is a non taxable benefit.

Dazed_and_C0nfused

nxdmsandkaskdjaqd said:

Keep_pedalling said:

Dazed_and_C0nfused said:

You should also check the Carer's Allowance situation.  You can't normally (ever?) receive that amount of State Pension and Carer's Allowance.

Or is whichever tax year you are referring to the first year she got State Pension and she was getting Carer's Allowance prior to that.  In the same tax year?

That could have a double benefit as it might free up some savings starter rate band.

She earns way too much to get CA

All of the following must apply:

• you’re 16 or over
• you spend at least 35 hours a week caring for someone
• you’ve been in England, Scotland or Wales for at least 2 of the last 3 years (this does not apply if you’re a refugee or have humanitarian protection status)
• you normally live in England, Scotland or Wales, or you live abroad as a member of the armed forces (you might still be eligible if you’re moving to or already living in an EEA country or Switzerland)
• you’re not in full-time education
• you’re not studying for 21 hours a week or more
• you’re not subject to immigration control
• your earnings are £151 or less a week after tax, National Insurance and expenses

It was my mistake it's Attendance Allowance.

You can ignore that for income tax purposes, it's a non taxable benefit.

kimwp

So if it's a non taxable benefit, then some of the starter saving allowance might apply? It seems to be reduced  by £1 for every £1 earned over the personal allowance (check the detail)

Dazed_and_C0nfused

kimwp said:

So if it's a non taxable benefit, then some of the starter saving allowance might apply? It seems to be reduced  by £1 for every £1 earned over the personal allowance (check the detail)

Correct.  I think the op's mother will be able to use the savings starter rate band but is no longer going to be using the savings nil rate band (as insufficient interest to need it).

xylophone

As others have said, Attendance Allowance is a non taxable benefit.

It appears that apart from AA, your mother's only income arises from a private/occupational pension, state pension and savings.

From your first post,  it appears that her total non savings income is £14,623.58.

Assuming she is not resident in Scotland, she owes tax at 20% on £14,623.58 - £12,570.
 
20% x £2053.58  = £410.71

She can set her savings income against the starting rate for savings. See

https://www.gov.uk/apply-tax-free-interest-on-savings

£5000 - £2053.58 = £2946.42

Her savings income is less than £2946.42.

Therefore she does not owe any tax on her savings income.