Dla And Carers Allowance

[Kathyan]

My twin grandsons have recently been diagnosed with ADHD and now get DLA. My son in law is self employed and my daughter is a stay at home Mum. They get child tax credits and working tax credits. Does anyone know if my daughter were to claim carers allowance how it would affect them re benefits?

[themas]

Go here:

https://www.gov.uk/carers-allowance

Because carer's allowance is taxable it is treated as income in calculating the amount of working & child tax credit so those payments would reduce - but not by the full amount of the Carers Allowance. You need to notify the Tax Credit Office that you have started to get the allowance.

Note that you are only entitled to the allowance if the children (or one of them) is on the middle or top rate of the care element of DLA.

[Tarser]

I heard this exact question on a radio phone-in. Tax credits will be increased if your daughter is awarded carers' allowance. My son has ME and is supervised by my wife. She got carers' allowance but then they took it away without a real explanation. We are reapplying for it now as my son has not improved.

[Kathyan]

She has applied for it and they have told her she will get extra tax credits as well. I will let you know how she gets on.

[themas]

Kath - did the Tax Credit people already know about the DLA? If they did, then additional tax credits should have been paid anyway, regardless of Carers Allowance. If that is the situation, getting Carers Allowance would not add to the tax credits. In other words, it is the entitlement to DLA which triggers the extra tax credit, not the entitlement to Carers Allowance.

Carers Allowance is taxable so has to be declared to the tax credit people on the annual declaration each year, & will count as income in calculating the total amount of tax credit payable.

[themas]

Kath - just realised you say she has applied for it - meaning Carers Allowance. That benefit is dealt with by DWP. Has she also quite separately told the tax credit people about the DLA? If not, she must do so as DWP will not necessarily tell them (in fact, I think it virtually certain that they will not get the information from DWP).

[Kathyan]

Thanks themas, I will pass the information on to her.

[Kathyan]

My daughter has been awarded carers allowance. She has also been in touch with the tax office. Thanks to everyone for their advice. x