How much board can I charge and what are the tax implications?

[Tiara]

Hi everyone,

My Grandmother has Alzheimer's disease and usually is cared for by us and 2 care visits per day. She has had a suspected stroke and is in hospital and the hospital have deemed that she is no longer able to live independently. As we do not feel that she would cope very well in a care home yet, she is coming to live with us.

We have POA and wondered how do we go about my Grandmother contributing to her living with us? Are we able to take board from her to contribute to her food costs as well as extra gas, electricity, water etc? What is a reasonable amount that other people take and is this subject to tax?

Many thanks for all your help!

 

[Sarasa]

Hi @Tiara, and a warm welcome to Dementia Talking Point.
I don't know about what would be a fair amount to charge your grandmother, I'm sure someone that knows about these things will be along in a moment to advise you.
How is your grandmother after her stroke? You say you don't think she is quite ready for a care home yet, but how will she cope if she is home alone, and will she be very confused about not being in her own place? I guess as she's your grandmother you work and maybe also have young children. Would you be able to do your job and all the other things that need doing and take care of her too. It might be a good idea to not do anything final yet, maybe have her stay with you when she is discharged from hospital and see how you all get on. If it works out great. if not maybe she would do better at home with an enhanced care package, or in a care home.

 

[nellbelles]

Hello @Tiara and welcome from me also.
I wonder if talking to some on the helpline would help you with tax implications

Dementia Support Line

If you need dementia support, we’re here for you. Get personalised information, support and advice by calling us on 0333 150 3456.

www.alzheimers.org.uk

 

[T1000]

Hi OP, sorry to hear this, it's very helpful fo you to take this on, it will be a big change for you though. We have done this for my mum, 3 years now and not always easy, though mum is not at a very intense stage yet it's still hard. and it does change things. Mum does contribute a little, for the meals we cook for her, board, gas, elec, petrol, water etc we ask for £12 per day. You do not pay tax as the government allows you to rent a room up to £7500 per year tax free. Hope this helps.

 

[TraceyD68]

Hi everyone,

My Grandmother has Alzheimer's disease and usually is cared for by us and 2 care visits per day. She has had a suspected stroke and is in hospital and the hospital have deemed that she is no longer able to live independently. As we do not feel that she would cope very well in a care home yet, she is coming to live with us.

We have POA and wondered how do we go about my Grandmother contributing to her living with us? Are we able to take board from her to contribute to her food costs as well as extra gas, electricity, water etc? What is a reasonable amount that other people take and is this subject to tax?

Many thanks for all your help!

Hi,
I would advise caution as you have POA. You have to be very careful in that situation and if you're in the UK (not sure from your post), POA holders are not allowed to profit from the person dubkect to the POA. Strictly speaking, I think you have to get any financial arrangements approved by the court of protection to safeguard everyone involved. It may be worth getting some legal advice.

 

[nitram]

OPG have a document about family care payments which relates to deputies not attorneys.
You could use it as guidance if you approach OPG

Public Guardian practice note (SD14): OPG’s approach to family care payments (web version)

www.gov.uk

 

[Duggies-girl]

@Tiara Yes your grandmother should pay for her bed and board and also pay her fair share of any bills although I couldn't make a guess at how much this should be. This would not be profiting from your grandmother as everyone has to pay their fair share and you would not be expected to subsidise her.

 

[Jessbow]

Hi,
I would advise caution as you have POA. You have to be very careful in that situation and if you're in the UK (not sure from your post), POA holders are not allowed to profit from the person dubkect to the POA. Strictly speaking, I think you have to get any financial arrangements approved by the court of protection to safeguard everyone involved. It may be worth getting some legal advice.

even if you charged £140 a week, by the time you have provided food, heat & light, laundry and care you wouldn't be seen as 'Profiting'.

You are ot allowed to profit as a POA, but it doesnt mean you are obliged to subsidise either

 

[MaNaAk]

Hi everyone,

My Grandmother has Alzheimer's disease and usually is cared for by us and 2 care visits per day. She has had a suspected stroke and is in hospital and the hospital have deemed that she is no longer able to live independently. As we do not feel that she would cope very well in a care home yet, she is coming to live with us.

We have POA and wondered how do we go about my Grandmother contributing to her living with us? Are we able to take board from her to contribute to her food costs as well as extra gas, electricity, water etc? What is a reasonable amount that other people take and is this subject to tax?

Many thanks for all your help!

You've received some good advice so far but you will need to look into benefits. Does she have Attendance Allowance? If she receives this you will be able to claim Carers Allowance. She will need more in the future but I think she is so lucky to have you.

MaNaAk

 

[Tiara]

Hi everyone.
I just wanted to thank you all for taking the time to reply to me and offer such good advice. We have decided on an amount that she is contributing towards bills. She has been with us 3 weeks now and whilst it can be very difficult at times, I feel blessed to be able to spend quality time with her. She has been the best Grandparent anyone could wish for and would have walked over hot coals to be there for me when I was younger so I feel very privileged to be able to care for her when she needs me. Thanks again to everyone for their help.

 

[Izzy]

I'm glad you have things sorted out. Wishing you and your grandmother well.

Remember that this forum is always here for you.

 

[SweetPepper]

Hi everyone.
I just wanted to thank you all for taking the time to reply to me and offer such good advice. We have decided on an amount that she is contributing towards bills. She has been with us 3 weeks now and whilst it can be very difficult at times, I feel blessed to be able to spend quality time with her. She has been the best Grandparent anyone could wish for and would have walked over hot coals to be there for me when I was younger so I feel very privileged to be able to care for her when she needs me. Thanks again to everyone for their help.

Wow, what a lovely relationship you have, I wish you all the best on the journey.

 

[Palerider]

Hi everyone,

My Grandmother has Alzheimer's disease and usually is cared for by us and 2 care visits per day. She has had a suspected stroke and is in hospital and the hospital have deemed that she is no longer able to live independently. As we do not feel that she would cope very well in a care home yet, she is coming to live with us.

We have POA and wondered how do we go about my Grandmother contributing to her living with us? Are we able to take board from her to contribute to her food costs as well as extra gas, electricity, water etc? What is a reasonable amount that other people take and is this subject to tax?

Many thanks for all your help!

I agree with the others, I think you need to seek professional advice. Ultimately if you get this wrong you can find yourselves in a very difficult situation with the law and safegaurding