I have started a new job and I am earning £120 per week, but I get paid at the start of the first month, so monthly. In October my earnings were £120 week. But there were 5 weeks in October 2018, so I learnt £600 over the 5 weeks which is £120 per week.
Is this ok? I have been receiving carers every week in October, but I am not sure. If this is not okay, what do I do, do I call them and tell them? How do I return the money to them as I do not want to get in to any trouble.
I also called carers allowance unit today and asked them what the earning limits were and they said this:
£240.01 per two weeks
£48.03 per 4 weeks
£520.40 for a whole month (irrespective of number of weeks)
On GOV.UK it says we must earn £120 a week, nothing else is mentioned…
Have a read of the CUK factsheet on Carers Allowance here:
Scroll down to “You don’t earn over £120 a week (after deductions)” where it explains how the DWP calculate earnings.
There is also a section on how you can make deductions (especially into a private pension plan) to keep you within the earnings limit.
We had one member with a disabled child whose swimming lessons counted towards expenses. Be sure to read the fine print carefully, I missed out on lots of money as I didn’t realise what I could claim for.
Here is a good explanation of what you can claim for.
As a forum of carers, we cannot always be familiar with all the rules and regulations, but our helpline is. I found the above link very quickly when I just googled “Carers Allowance allowable expenses”.
If you are affected, you may be able to make deductions from your earnings to help you retain your Carer’s Allowance payments without having to cut your hours.
Income tax and National Insurance contributions (NIC)
Half of any contributions that you make into a work or personal pension.
Certain business expenses that you as an employee pay for but your employer does not reimburse. Such an expense must, as for income tax purposes, be incurred in the performance of the duties of the employment and be wholly, exclusively and necessarily incurred.
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
You can find out more about the income tax treatment of employment expenses on our website.
You can also take off up to half of your earnings (after the above deductions if they apply) for amounts you pay to someone to look after either a child under 16 who you or your partner get child benefit for, or the person you are the carer for, when you are at work (so long as you pay someone other than a close relative).
If your earnings after deductions vary, you may still be able to claim Carer’s Allowance for the weeks when they are below the £110 limit. The DWP also has the discretion to average your earnings over a five-week period, or a ‘recognisable cycle of work’ if you have one.
Should you need it to refer to, you can find the Department for Work and Pensions (DWP) Decision Makers Guidance dealing with the calculation of earnings on GOV.UK.
Interesting to note that a " Close relative " cannot be paid to care in one’s absence ??? __
(so long as you pay someone other than a close relative).
Don’t we all need that claification like … yesterday ???