My sister is sole carer for my mother who has vascular dementia. She has power of attorney for my mother and has arranged the attendance allowance but she has a problem in that she has been told that this allowance can only be paid into an account in her name (by the DWP). This means that it counts as her income and as such she has to pay tax on it. Is this correct or is there something she can do about this?
Attendance allowance
- Thread starter Elephant2013
- Start date
Attendance allowance should go into your mums account and if your sister has power of attorney she will be able access it and use it for care for your mum and use it for any needs mum may require. I am sure it is not classed as income so should not be taxable.
Sunbell
Sunbell
I'm guessing that you are dealing with the rules around being an appointee (or at least the DWP think you are). If she was an appointee the DWP do prefer that any benefits and pensions are payed into an account that is controlled by the appointee. However, if she has already registered the power of attorney and is controlling your mother's bank accounts there is no reason at all why those funds shouldn't be paid into said account.
The reasoning on the part of the DWP is that they need a clear line in the sand about who is administering these funds: if they let them be paid into an account controlled by a person without capacity they couldn't really prove anything if the funds went missing. Or at least that's how I understand it.
I'll have a look and see if I can find the relevant section on the DWP website regarding bank accounts.
The reasoning on the part of the DWP is that they need a clear line in the sand about who is administering these funds: if they let them be paid into an account controlled by a person without capacity they couldn't really prove anything if the funds went missing. Or at least that's how I understand it.
I'll have a look and see if I can find the relevant section on the DWP website regarding bank accounts.
From ww.dwp.gov.uk/docs/third-party-access.pdf
However, even if your sister chose to open an account to receive these benefits they would not be considered her income.
Bear this in mind as well (from the same source)
So if she hasn't told them yet, she should point out that she has a POA.
Where is any state pension being paid into? AA normally follows that.
4 years ago my mother was assessed for attendance allowance. My brother was at the assessment and later told me that the official had told him that both aa and Mam's pension should be paid into an account that also had his name on it as she had dementia. Mam has since died and as administrator of her estate, I have discovered lots of things.
Nobody held POA for Mam and my brother kept putting off applying to the COP as I felt that we should make a joint application because Mam suffered from paranoia. She went into a care home in January of this year. By this point she could barely string a sentence together.
Since her death, I discovered that my brother also had internet access to her main accounts. Mam had "gifted" him £6000 in Oct of last year and virtually emptied one of her ISAs by doing so. In May of the same year, she had £5,600 in her current account. £5,0000 of this was "gifted" to my brother. In Dec that year Mam had £2,200 in the same account and again gifted him £2,000, leaving her with £200 for ovr the holidays.
I have also found that the account that had her state benefits going into it was soley in my brother's name. This account has numerous monies going out of it for internet gambling, porn and holidays. I did a spreadsheet to calculate the difference between the money coming into it for mam and the money going out that was spent on her. £49,000 went in via pensions and aa and £19,000 went out on payments of bills etc. There is £20 left in the account.
Is there anything I can do about this? I am absolutely livid that my brother would take advantage of his ill mother like this. Surely the DWP should keep an eye on accounts that they have nominated an appointee for
Nobody held POA for Mam and my brother kept putting off applying to the COP as I felt that we should make a joint application because Mam suffered from paranoia. She went into a care home in January of this year. By this point she could barely string a sentence together.
Since her death, I discovered that my brother also had internet access to her main accounts. Mam had "gifted" him £6000 in Oct of last year and virtually emptied one of her ISAs by doing so. In May of the same year, she had £5,600 in her current account. £5,0000 of this was "gifted" to my brother. In Dec that year Mam had £2,200 in the same account and again gifted him £2,000, leaving her with £200 for ovr the holidays.
I have also found that the account that had her state benefits going into it was soley in my brother's name. This account has numerous monies going out of it for internet gambling, porn and holidays. I did a spreadsheet to calculate the difference between the money coming into it for mam and the money going out that was spent on her. £49,000 went in via pensions and aa and £19,000 went out on payments of bills etc. There is £20 left in the account.
Is there anything I can do about this? I am absolutely livid that my brother would take advantage of his ill mother like this. Surely the DWP should keep an eye on accounts that they have nominated an appointee for
Sounds like rubbish to me, she should have an account in your mother's name with her as power of attorney only to sign.
I think she is telling porkies, be careful. I'd also call the DWP tomorrow and the Court of Protection and ask their advice, they will put your right.
Sounds like a pile of rubbish to me.
Hi
Am just sorting this out for my mum, get her to check they haven't made the same error they did for me.
I had somehow become the person due the allowance and mum the carer?!?!?!?!
Seems it's an easy mistake to make, but its a benefit and NOT taxable payable to the "sufferer"
Hope that clears things up, I had to make a swift phone call to sort mine out too xx
Am just sorting this out for my mum, get her to check they haven't made the same error they did for me.
I had somehow become the person due the allowance and mum the carer?!?!?!?!
Seems it's an easy mistake to make, but its a benefit and NOT taxable payable to the "sufferer"
Hope that clears things up, I had to make a swift phone call to sort mine out too xx
AA is for the cared for, not the carer. If it is being paid into an account that is not your Mother's then it can't be taxable because its actually your Mums allowance not your sister's. Hope that makes sense. My Mum's AA gets paid into the same account as her state pension, I think that's where it normally gets paid into. I now have joint a/c with my Mum so no problem me getting money out with or without POA.
EIM76100 - Social security benefits: list of non-taxable social security benefits
Part 10 ITEPA 2003
UK social security benefits specified at Table B Parts 1 and 2 at Section 677(1) ITEPA 2003 are wholly exempt from tax.
The following benefits are not taxable. The benefits are described at the paragraphs mentioned below:
•Attendance Allowance
This is from the HMRC.gov.uk website and it happens that attendance allowance is the first on a very long list of non-taxable benefits: child allowance, cold weather payments etc.
hope this helps
K
Part 10 ITEPA 2003
UK social security benefits specified at Table B Parts 1 and 2 at Section 677(1) ITEPA 2003 are wholly exempt from tax.
The following benefits are not taxable. The benefits are described at the paragraphs mentioned below:
•Attendance Allowance
This is from the HMRC.gov.uk website and it happens that attendance allowance is the first on a very long list of non-taxable benefits: child allowance, cold weather payments etc.
hope this helps
K
