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Carers Allowance and Universal Credit Question

fryster
fryster Posts: 41 Forumite
Part of the Furniture 10 Posts Name Dropper Combo Breaker
edited 30 January at 3:26PM in Benefits & tax credits
Good Afternoon,

Currently receive carers allowance and universal credit. Have the carers element on universal credit claim which is reduced to £0 due to receiving carers allowance. I've started working self employed as a sole trader which I fit around my caring responsibilities. Putting most of my earnings into a SIPP at present as universal credit allow all contributions to be deducted from income. Carers allowance is only 50% of contributions. Going forward if I was to cancel my carers allowance claim would this automatically be picked up by universal credit and therefore I'd receive the universal credit element? Haven't made enough to impact carers allowance yet but looks possible I may do in the future. 

Edited to add: Also, as carers allowance is taxable it surely makes sense for me to have the element included in UC instead to reduce any potential tax burden.

Many thanks!

Comments

  • Rubyroobs
    Rubyroobs Posts: 1,108 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    t's not just your carers element that is reduced to zero. Carers allowance is taken off your total UC award. If you cancelled your carers allowance then your UC would just rise by the same amount as there would be no deduction.
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