Carers Allowance

NedS

https://forums.moneysavingexpert.com/discussion/comment/81892754#Comment_81892754

Yes, it's based on their net earned income but the pension isn't a red herring, as if it didn’t exist then their net earnings would be higher as the pension wouldn't be using up their tax allowance. Further, how the tax allowance is split between pension income and earned income will also affect the net earned income as shown on the payslip.

I think it's a valid question.

The simplest interpretation is to go by net earnings as reported on payslip, but I have no clue whether this is the correct (DWP) interpretation. I also have no faith in DWP providing a correct answer should you phone them for clarification.

NedS

Given how close they are to the threshold, are there any other allowable expenses?

https://www.gov.uk/carers-allowance/eligibility

I see that 50% of pension contributions are deductible, so if they contributed at least £10/week into the employers pension scheme, £5 would be a deductible expense bringing their earnings down from £201/week to £196/week and thus within the threshold (and they'd get tax relief and no issues on Carers Allowance).

remyroo

Thanks for the replies. Their pension contribution is only £14 per month. The carers allowance application form only asks for gross earnings so unless DWP contact the tax office to establish the net amount they may assume they don’t earn enough to pay tax as they will be unaware of the private pension.
The help line number wasn’t much help.