Working with Carers Allowance and Tax Credits
ohdrar
Posts: 113 Forumite
HI All
First post - I hope someone can advise me on this one.
Im getting carers allowance for my child whose 16 and in college. I want to work and know the maximum is £123 per week on carers (equals 15 hours at nmw). But I also get working tax credits as being self employed and then the child tax credits on top as full time education.
The rules for working tc are over 16 hours per week. My question is can I be working part time and still be self employed for the purposes of tax credits ?
Thanks
First post - I hope someone can advise me on this one.
Im getting carers allowance for my child whose 16 and in college. I want to work and know the maximum is £123 per week on carers (equals 15 hours at nmw). But I also get working tax credits as being self employed and then the child tax credits on top as full time education.
The rules for working tc are over 16 hours per week. My question is can I be working part time and still be self employed for the purposes of tax credits ?
Thanks
0
Comments
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HI All
First post - I hope someone can advise me on this one.
Im getting carers allowance for my child whose 16 and in college. I want to work and know the maximum is £123 per week on carers (equals 15 hours at nmw). But I also get working tax credits as being self employed and then the child tax credits on top as full time education.
The rules for working tc are over 16 hours per week. My question is can I be working part time and still be self employed for the purposes of tax credits ?
Thanks
So what is your self-employed work? How many hours do you do?? Will you continue that work when you start the other work?0 -
Income from the self employment would also count towards the Carers Allowance income amount.
UC may work better for you, as you don't need to claim carers to ge the carers premium and there is no earnings cut of as such, other than the normal taper and earnings disregard you get whilst on UC.
Try a benefits calculator and do a check. It may not be better, hence why I suggest a check.0 -
Icequeen99 wrote: »So what is your self-employed work? How many hours do you do?? Will you continue that work when you start the other work?
Im a cleaner for holiday cottage, the hours of work vary - Im open to stopping this work and having the job instead or if I can keep both I will.0 -
Im a cleaner for holiday cottage, the hours of work vary - Im open to stopping this work and having the job instead or if I can keep both I will.
But if you're already doing 16 hours a week as a cleaner (assuming you are getting more than NMW per hour - even if self-employed) how are you managing to claim Carer's Allowance. They must already be taking into account your earnings.
IQ0 -
If you mean can you be employed for say 10 hours and self employed for 6 hours and still get Working Tax Credit for working over 16 hours?
Then yes.
Doubt very much that UC would give more money.0 -
I think tomtom is suggesting OP look at UC because OP appears to be at risk of taking themselves out of eligibility for CA by going over the earnings threshold whereas UC will include the carer element in the maximum entitlement regardless of earnings. However the carer element is worth less than CA. DWP are carryout checks on CA entitlement and some people are being asked to repay thousands of pounds because they have gone over the earnings threshold.Doubt very much that UC would give more money.Information I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
I think tomtom is suggesting OP look at UC because OP appears to be at risk of taking themselves out of eligibility for CA by going over the earnings threshold whereas UC will include the carer element in the maximum entitlement regardless of earnings. However the carer element is worth less than CA. DWP are carryout checks on CA entitlement and some people are being asked to repay thousands of pounds because they have gone over the earnings threshold.
I can't quite understand how she is meeting the 16 hours threshold for WTC and not hitting the CA threshold - it sounds like she is cleaning for just one business (probably not self-employed in reality) in which case she must be working 16 hours most weeks if claiming WTC. Obviously other self-employments working hours don't always equate to profit at/above NMW, but in the OP's case it would be odd if it didn't
IQ0 -
That is my concern too.Icequeen99 wrote: »I can't quite understand how she is meeting the 16 hours threshold for WTC and not hitting the CA threshold. IQInformation I post is for England unless otherwise stated. Some rules may be different in other parts of UK.0 -
Icequeen99 wrote: »But if you're already doing 16 hours a week as a cleaner (assuming you are getting more than NMW per hour - even if self-employed) how are you managing to claim Carer's Allowance. They must already be taking into account your earnings.
IQ
Bold to assume Im making a profit equal to NMW? Believe it or not doesn't pay that well. When you say they are you meaning DWP or HMRC?0 -
Income from the self employment would also count towards the Carers Allowance income amount.
UC may work better for you, as you don't need to claim carers to ge the carers premium and there is no earnings cut of as such, other than the normal taper and earnings disregard you get whilst on UC.
Try a benefits calculator and do a check. It may not be better, hence why I suggest a check.
Thank you did not know about UC as Im on the legacy - have done an online calculator but worried the carers can end up less on UC? Am I misguided about that? Thanks for your patience as I've never had to review my benefits before0
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