Hi , been a carer for my wife for over 18 years ,now that my youngest daughter (5) has started school ,I feel I could do a bit of part time work while she is in school,which would be good for my well-being,while still caring over 35 hours for my wife ,I have found a job on a self employed basis working 12 hours a week @£10 a hour as a carpenter ( which I love) so I’v informed dwp .( had a form from them asking about the 1st week ,which was 1st week in October 2018,I only earns £50 that week with no expenses,still waiting for reply to that ,How ever the guy I work with would like me to do more and sometimes I do a little extra for free just to finish a job ,Now I read on the forum that if I had a business account my business could earn what ever and I just pay myself a salary of £120 a week ,any extra going back into the business ( stay in business account)to buy tools ,materials and lierbilty insurance etc , so wanted to check that this is so,and also if I get a pension to pay in to ,do I pay from business account or personal account, many thanks for your help with this ,
Hi Chris … welcome to the canteen.
Self employment and claiming Carers Allowance ?
A MINEFIELD to say the very least.
First up … Universal Credit … rolled out on your manor :
If so , or due to be , first link … UC / Self Employment :
Self-employment and Universal Credit - GOV.UK
Second link … CAB on the same subject :
How Universal Credit payments work if you're self-employed - Citizens Advice
Both essential reading !
( Mines for the self employed are heavily featured on the main UNIVERSAL CREDIT thread … some are still yet to be mapped. Even receiving income a day early can throw out the UC element for months to come !!! )
Next up … expenses … what can be claimed against earnings … and still claim Carers Allowance :
In reality , a job for your accountant … to ensure that the SAME expenses qualify as a legitimate deductions … both for Carers Allowance and the Taxman … occasionly , there is a clash !
Keeping within the ( To be ) £ 123 weekly limit … £ 120 as I type ?
Marshalling … allied with expenses … private pension route ( Subjec to the " Right " flavour regarding tax relief … separate thread on that one ) … I will assume that you have done some homework already ?
Separate private and business accounts … wise … I presume not a limited company ???
If so , further complications … I’ll dig if necessary !
Enough from me … those are the basic considerations.
No doubt , numerous questions will arise … that’s what some of us do on this forum … do our best to answer them !
Numerous past threads on the same aspect … I’ll post links if any prove to be of a similar nature.
Anything else ?
Housing / assessments / caree considerations etc. etc. ?
We were self employed for years. You need a separate bank account, and then a copy of HMRC’s leaflet about allowable expenses. There are many, don’t miss out!
I hate to say this, but the ‘criminal’ in me wonders whether the simplest way to be ‘overpaid’ would be in cash for the ‘extra’.
Or, maybe - and this MIGHT be not criminal! - in ‘kind’??
Had to smile … the oldest " Practical " trick in the book !
A dilema for low millions of our fellow carers our there.
Thanks guys for your replies, yes not a limited but a sole trader,
So can I leave money in business Acc and just pay myself no more the £120? ,working for my own company as it were ? saying that I could only give myself £60 laSt week as I had to buy some tools to do a particular job , but if I had earn over the threshold I could of took home £120
Chris, before you do anything, you really need to understand more about running a small business, and the difference between the total payments you get from a job, expenses, and income.
As previously mentioned, HMRC always used to do some good leaflets on the subject.
The paperwork is really simple but you need to understand what HMRC will, and won’t, class as income, expenses, etc. before you start. DWP and HMRC have access to each others records.
I used to run the accounts for a hospital in Australia over 40 years ago, and did my husbands’s records in the same way, on paper. HMRC did a snapshot inspection, asked to see all my records for one month, I sent them the relevant sheet and all the receipts for that month. This was the work of literally seconds, as the receipts were all in date order stapled together at the end of the month. HMRC actually sent me a letter congratulating me on how good the records were!!!
At the end of every month I worked out everything that had come in; and everything that had gone out by way of expenses. His tools, laundry, heating, light, laundry allowances, tools etc.
“Income” as far as HMRC and DWP are concerned is the amount left over after all the outgoings.
Agreed 100% … homework needed … marshalling and expenses … links posted earlier.
With both , possible to " Earn " far in excess of £ 120 … to be £ 123 , and STILL claim carers allowance.
Any courses locally ?
Local business agency ?