Deductable expenses

Hi I’ve recently received a letter saying my carers allowance will be stopped as I’m over the threshold, I’ve sent all the info off with all the things I pay for, pension shirt break services, registration fees for my job and courses I have to pay for my job, I’ve also included my child’s 1:1 swimming lessons as she’s still being looked after whilst I work, should this be allowed does anyone know? Also what other things are allowed to be included? Is millege only allowed if your travelling to different places?

Many thanks Gaynor

Hi Gaynor.

Expenses deductible against Carers Allowance ?

Assuming you are not self employed ?

Work-related costs and Carer’s Allowance

To qualify for Carer’s Allowance you must earn less than a weekly earnings limit (£123 from 1 April 2019). However, any childcare costs or replacement care costs associated with working can be deducted from your earnings when calculating whether you qualify for Carer’s Allowance.

You’re allowed to deduct up to half your net earnings to reflect any payments you make to someone (other than a close relative) to look after your child or to look after the severely disabled person you normally care for while you’re at work. This may reduce your earnings to a level where you qualify for Carer’s Allowance.

For instance, you may earn £180 per week but have replacement care costs of £80 per week (money you pay to someone to look after the severely disabled person you normally care for while you’re at work). In this case you would still qualify for Carer’s Allowance, because your earnings after deductions would be below the weekly limit.
If you are using the calculator to look at how much better off you would be in work the calculator allows for childcare costs but not for replacement care costs when calculating whether you are below the weekly earnings limit.

If you are using the calculator to look at your current situation the calculator allows for both childcare costs and replacement care costs. You will see a question about replacement care costs on the net earnings page.

Work-related costs and Carer's Allowance - Entitledto

Pension contributions … usual way to marshall income so that the £ 123 limit is not breached :


Half of any contributions that you make into a work or personal pension.

So for example, if Fatima was paying £18 per week into a pension scheme, she can deduct £9 per week from her earnings. This means that although her actual earnings are £131.36 she will be treated as having earnings of £122.36 per week, allowing her to keep her Carer’s Allowance.

Thanks Chris, no I’m not self employed, but have to pay registration fees and course fees for my job as a dental nurse, I think I can claim uniform allowance for washing clothes etc… But not sure how much.
Also what does related care cost mean? Do you know at all please?

Thanks Gaynor

Related cost ?

Unknown in this context … possibly , an allowance against tax but not against benefits ?


Allowable deductions

If you are affected, please note that there may be deductions that can be made from your earnings to help you retain your Carer’s Allowance payments without having to cut your hours.

These include:

Income tax and National Insurance contributions (NIC).

Half of any contributions that you make into a work or personal pension.

An expense that is not repaid to an employee by the employer if it is incurred in the performance of the duties of the employment and is wholly, exclusively and necessarily incurred (in that same way that they are deductible for income tax purposes).

Examples of expenses for which deductions may be made are :

special tools and clothing.

professional fees and subscriptions.

telephone calls made entirely for work purposes.

business mileage or other work related travel expenses and any associated subsistence costs.

some costs of working from home.

The problem is a practical one … the DWP are both judge and jury.

Even then , the same outcome nationwide ???

I know HMRC had set amounts that you can claim for laundry, workwear etc., if you wanted more you had to have receipts. They are genuine costs of working which DWP should also recognise.