Carers Allowance and Income

Discussion in 'Legal and financial issues' started by father ted, Sep 18, 2019.

  1. father ted

    father ted Registered User

    Aug 16, 2010
    691
    London
    I do hope someone might be able to help me or give advice if they are in similar circumstances.

    When claiming Carers Allowance the rules you say you are allowed to earn £123 pw from work. Savings and interest from savings, occupational pensions are not considered but what about income from a rental property?

    I have been instructed by the DWP to comply with a telephone interview regarding my Carers Allowance. They would not tell me what it is about but as I recently completed a tax return I think it maybe to do with the rental income which I have declared every year since I received it. They have never queried it before.
    I have been on various forums and websites to ask. The CAB &Independent Age say income is income no matter whether it is from work or investments. Carers UK and Mencap said no, it is only income from paid employment that is considered and unearned income such as comes from rent or interest from savings is disregarded.
    It is really difficult when even the agencies offering advice and support don't agree who do you believe. Half of the rental income pays the third party top up for my mother who is in residential so that I can care for my disabled daughter. I gave up work because statutory services could not arrange the care cover I required in order to continue working. It all seems so unfair.
     
  2. canary

    canary Registered User

    Feb 25, 2014
    10,814
    Female
    South coast
    As far as Im aware it is only earned income that counts. I claim Carers Allowance and also get a personal pension which I have taken early. I asked DWP whether this counted and I was told that it is only earned income that counts.
    See what DWP say before worrying.
     
  3. Kevinl

    Kevinl Registered User

    Aug 24, 2013
    4,776
    Salford
    Only earned income counts if you get CA but CA is taxable. I guess they might argue that if your only source of income is the rental then you're a professional landlord, how do you define a professional landlord? Is all I can think.
    If you're declaring an income of £X for tax purposes and that's above the CA limit...it's complicated.
    Does a landlord not earn the rental income, HMRC think they do and tax it as income for tax purposes but then they also treat CA as income for tax purposes.
    There are a few landlords on here who might know.
    K
     
  4. nitram

    nitram Registered User

    Apr 6, 2011
    19,283
    Male
    North Manchester
  5. Starting on a journey

    Starting on a journey Registered User

    Jul 9, 2019
    51
    The guide above is quite clear. If you have one property, rent it out to tenants and make occasional repairs any money is treated as an investment rather than a business and any rent is treated as capital and not taken into account. If you have more than one property rented out then it will probably be treated as a business and income thiswill be taken into account as earnings. This decision has to be made by the decision maker who would take into account the circumstances. I know the question about rental income is on the current form but I am not convinced that it was on earlier versions.
    They may simply be getting the information from you so that they can treat the property as an investment.
    Unfortunately you will.just have to wait and see, but take a note of what they say, ask for names and ask what happens next. Good luck
     
  6. AD123

    AD123 Registered User

    Dec 4, 2012
    37
  7. nitram

    nitram Registered User

    Apr 6, 2011
    19,283
    Male
    North Manchester
    Remember that DMGs are just a guide for the decision maker.
    In any specific case if push comes to shove reference to statute is essential.

    In the past I have found that quoting a DMG has the desired effect. Most people don't want to get involved in protracted arguments.
     
  8. father ted

    father ted Registered User

    Aug 16, 2010
    691
    London
    Many thanks to all of you that have responded, I am grateful for the advice.

    It has raised 2 interesting points:
    1. I have been told by one organisation, like Nitram has said that it is a guide only- final decision rests with the decision maker.

    This seems very arbitrary. Surely there should be a definitive rule otherwise those with exactly the same circumstances are at the mercy of an individual who may have a bias because of their own circumstances.

    2. It has opened my eyes to the number of organisations, some very well known who are offering advice that is either false or not properly researched.
     
  9. nitram

    nitram Registered User

    Apr 6, 2011
    19,283
    Male
    North Manchester
    Who, if challenged , has to defend the decision by reference to statute.

    Definitive rules covering a myriad of circumstances are impractical, in specific cases you rely on the judgement of the decision maker, I am not aware of anything like 'case law' to help the decision maker.
    You can challenge any decision.


     

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