My mother’s health is diminishing and, as I’m between jobs, I have offered to care for her for 3 days a week.
We are in the fortunate position where we can’t claim any benefits but my mother (and my siblings) want to pay me.
What are the implications of being paid for my services / expenses (tax, NI etc)?
Would it be better if she paid me a gift and sort out the inheritance tax later if she passes in the next 7 years?
Hi Janette … welcome to an extremely quiet forum as I type.
Becoming a paid care worker … your mother as your employer ?
( Attendance Allowance / Carers Allowance route … dismissed because of the qualifying criteria for CA ? Both are NOT means
tested ! )
" Gifting " monies in return for labour … what would the TaxMan and , possibly , the LA think ( Future move into a care
home being a possibility … perhaps not now but … in 5 - 10 years time ? ).
( 7 Year rule for Inhertitence Tax purposes does NOT work when an LA undertakes a financial assessment for
care home considerations ! Tax Man may not be interested BUT … any LA would be. )
One scenario to think VERY carefully over … all sorts of " Headaches " spring to mind.
My recommendation is expert advice now … and … AGE UK springs to mind … given their expertise in the whole field.
Quite a bit to work through in respect of ALL considerations arising from what appeared to be a simple question.
( Housing / caring / tax implications / Employment law / wills / powers of attorney etc.etc. )
AGE UK will work with you through all of them.
( Forthcoming Green Paper on social care … that might change the whole ball game in certain areas. )
Your mother’s health … care to expand on this … CHC / NHS Continuing Healthcare may become a factor down the line.
We can certainly help with the day to day considerations but not with the whole scenario as presented.