× Members

Carers allowance and rental income

More
3 years 9 months ago #261381 by asperritt
Carers allowance and rental income was created by asperritt
Hi,
My sister recently claimed DLA for her 11 year old daughter and has been awarded higher rate care and mobility. She had to give up her job because of the increasing care needs of her daughter and is looking into claiming carers allowance but there is a question on the form asking if she has any income from renting out a property. She is part owner of a house that is rented out for £700 per month but obviously does not have that £700 to spend on herself - a big chunk is taken in taxes, then there is insurance, maintenance etc to pay for out of the remainder. The bank account for the rent is in her name. So far in about 30 months of renting it out she has never withdrawn any money except for the expenses relating to the property and she worked out that so far the average total profit is only about £100 per month - she had to get the living room floor replaced due to woodworm and a new boiler, as well as other smaller maintenance expenses, plus insurance, tax etc.
The tenancy agreement has herself and her husband as landlords, but our dad is also part owner of the house.
The carers allowance form only has a space for the income from the rental with no opportunity to explain outgoings etc.
How should she approach this question - should she work out the profit or put the full rental amount on the form? And as the whole profit is not only for her, should she put half of the amount (as her husband is also on the rental agreement).
Her husband is in full time employment, would his income be taken into account for her carers allowance application?

Please Log in or Create an account to join the conversation.

More
3 years 9 months ago #261443 by BIS
Replied by BIS on topic Carers allowance and rental income
Hi weebie

I'm sorry but your questions are outside the scope of this forum and you would be wise to get the advice of a specialist benefits adviser. If you don't know one, you can look for one in your area.

advicelocal.uk/

BIS

Nothing on this board constitutes legal advice - always consult a professional about specific problems

Please Log in or Create an account to join the conversation.

More
3 years 9 months ago #261452 by denby
Replied by denby on topic Carers allowance and rental income
Hi, I know tax is not the same, but our accountant splits the rent from our old house down the middle for tax purposes and sets all expenses such as you describe [it needed a new boiler just like yours] and even regular paid-for gardening against tax. So from my I must emphasize, unqualified, point of view I would use the one box to enter the net amount that accrues to her and not the husband's share if that is not what the form asks.
Try scouring 'gov.uk' for the answer as to whether his income is taken into account.
Best wishes, Denby

Please Log in or Create an account to join the conversation.

More
3 years 9 months ago #261494 by Gary
Replied by Gary on topic Carers allowance and rental income
Hi weeble

Husbands income is not taken into account when claiming Carers Allowance, CA is purely based on the claimants income. In regards to the rented home, I would contact DWP and ask, before you do get all your figures that is sent to inland revenue in your tax returns, what % does she own, how is the income split.

As BIS has stated below you do need to seek advice from a welfare rights organisation as it could be quite complex.

Gary

Nothing on this board constitutes legal advice - always consult a professional about specific problems

Please Log in or Create an account to join the conversation.

Moderators: GordonGaryBISCatherineWendyKellygreekqueenpeterKatherineSuper UserChrisDavid
We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.