Income tax and Carers Allowance

We just realised HMRC were not aware hubby gets carers allowance he rang other day and his online tax account has updated with a lower tax code (they deducted the carers amount) BUT they don’t mention Carers in his income , they have it down as State pension! He’s too young for state pension he only has a small occupational pension and along with carers is still below the tax threshold. They have also reduced his personal tax code by £39, the interest he got on a savings account! According to HMRC we are entitled to £1,000 of savings interest before it becomes taxable.
Is your carers allowance showing as state pension?
Do they reduce your personal tax code with savings interest?

Talk to the Carers UK helpline.

Slightly off topic but it might be worth investigating (if you haven’t done already) the fact that you are a carer can mean you are exempted from council tax payments. I know it does happen

Thanks for info but im in NI so no council tax here x

Hi @Eagle64 Tbh I think your local Citizens Advice is most likely to be able to help, especially given that this is a tax question, more than anything. Carers Allowance is certainly a taxable benefit in the UK, but the NI specifics on tax law are beyond most of us on the forum.

No Council Tax in NI? It’s my largest single outgoing in Hampshire!

In NI they still have the Domestic Rate system rather than Council Tax, so all the rules are different.

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