Tax credits and Carers Allowance

scotty1971
scotty1971 Posts: 1,732 Forumite
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in Benefits & tax credits
As Carers allowance is counted as an income for tax credits,is it worth claiming as surely what you gain in Carers Allowance you would lose in Tax Credits or am i missing something?

Thanks

Scott
«13

Comments

  • Tigsteroonie
    Tigsteroonie Posts: 24,954 Forumite
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    Put the two scenarios into a benefits checker (e.g. Turn2Us) to determine the difference. I didn't think you lost £ for £ with tax credits, but it all depends on personal circumstances.
    :heartpuls Mrs Marleyboy :heartpuls

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  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    It would depend on other personal circumstances/income etc but tax credits by 41p for every £1 of taxable income.
  • scotty1971
    scotty1971 Posts: 1,732 Forumite
    First Anniversary Combo Breaker First Post
    Darksparkle wrote: »
    It would depend on other personal circumstances/income etc but tax credits by 41p for every £1 of taxable income.

    My income is £28000,my partners was £4600 last tax year.She will no longer working.3children one recieves middle rate care and lower rate mobility.

    thanks
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    As said, tax credits reduces by 41p for every £1 earned (after initial threshold of £6,420).

    However you need to also factor in there is a £2,500 disregard when income increases/decreases from previous tax year to current tax year.
  • scotty1971
    scotty1971 Posts: 1,732 Forumite
    First Anniversary Combo Breaker First Post
    Darksparkle wrote: »
    As said, tax credits reduces by 41p for every £1 earned (after initial threshold of £6,420).

    However you need to also factor in there is a £2,500 disregard when income increases/decreases from previous tax year to current tax year.

    Tried the Turn2us calculator,put in all the details,it came back with Tax credit payments would be £510 with carers allowance and £580 without,does that seem right?
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    What did you put for this year's expected household income?
  • Dazed_and_confused
    Dazed_and_confused Posts: 6,458 Forumite
    Uniform Washer
    My income is £28000,my partners was £4600 last tax year.She will no longer working.3children one recieves middle rate care and lower rate mobility.

    Has your wife applied for marraige allowance? From the info you've posted she may be eligible to apply for last year (2016:17) and this year as well.
  • scotty1971
    scotty1971 Posts: 1,732 Forumite
    First Anniversary Combo Breaker First Post
    Dazed_and_confused wrote: »
    My income is £28000,my partners was £4600 last tax year.She will no longer working.3children one recieves middle rate care and lower rate mobility.

    Has your wife applied for marraige allowance? From the info you've posted she may be eligible to apply for last year (2016:17) and this year as well.

    Not married living together.
  • scotty1971
    scotty1971 Posts: 1,732 Forumite
    First Anniversary Combo Breaker First Post
    Darksparkle wrote: »
    What did you put for this year's expected household income?

    I put in £28000 for myself and £0 for my partner as she will have no income.
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    scotty1971 wrote: »
    I put in £28000 for myself and £0 for my partner as she will have no income.

    She would though if receiving carers allowance.
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