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Pip and state pension
- Deg Peard
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1 year 8 months ago #279655 by Deg Peard
Pip and state pension was created by Deg Peard
Starting next week my wife goes to state pension £815 from esa.
Shes currently in receipt of pip.
I will be claiming carers allowance for her.
Will we have to pay tax as it might go above the personal allowance.
Carnt call hmrc as dont have the proof of id they require. Thanks
Shes currently in receipt of pip.
I will be claiming carers allowance for her.
Will we have to pay tax as it might go above the personal allowance.
Carnt call hmrc as dont have the proof of id they require. Thanks
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- Gordon
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1 year 8 months ago #279662 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Pip and state pension
Deg Peard
Carers Allowance is a taxable benefit but only if you exceed your Personal Allowance, you don't mention any other income that you have so I can't say whether this would be an issue or not but for clarity, your wife's pension does not affect your taxable income.
Gordon
Carers Allowance is a taxable benefit but only if you exceed your Personal Allowance, you don't mention any other income that you have so I can't say whether this would be an issue or not but for clarity, your wife's pension does not affect your taxable income.
Gordon
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- Deg Peard
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1 year 8 months ago #279673 by Deg Peard
Replied by Deg Peard on topic Pip and state pension
My wife will get state pension from the 15th may at £815. We both get pip.
I claim carers allowance for looking after wife.
We have no other income. Does she have to pay tax?
I claim carers allowance for looking after wife.
We have no other income. Does she have to pay tax?
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- Gary
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1 year 8 months ago #279691 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Pip and state pension
Hi Deg Peard
The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on.
Your wife's personal allowance is £241.73 per week, her state pension = £203.85 pw therefore she will not have to pay any tax on her income, remember PIP is a tax free payment so will not affect her income.
Carers Allowance is taxable so it will affect you but not your wife.
www.gov.uk/income-tax-rates
If You are worried about your taxliabilities then contact Taxhelp for older persons; taxvol.org.uk
Gary
The standard Personal Allowance is £12,570, which is the amount of income you do not have to pay tax on.
Your wife's personal allowance is £241.73 per week, her state pension = £203.85 pw therefore she will not have to pay any tax on her income, remember PIP is a tax free payment so will not affect her income.
Carers Allowance is taxable so it will affect you but not your wife.
www.gov.uk/income-tax-rates
If You are worried about your taxliabilities then contact Taxhelp for older persons; taxvol.org.uk
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Deg Peard
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1 year 8 months ago #279803 by Deg Peard
Replied by Deg Peard on topic Pip and state pension
Thank you. Have you any idea how much i will be taxed out of my carers allowance? Iv tried looking at the links you sent but couldnt understand it!
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- Gary
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1 year 8 months ago #279825 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic Pip and state pension
Hi Deg Peard
If your only income is Carers Allowance then you will not be taxed.
To claim CA you have to be earning less than £139 per week, £139 + £76.75 CA = £215.75 pw which is less than £241.73 pw, your personal allowance, therefore you will not be eligible to pay tax.
Gary
If your only income is Carers Allowance then you will not be taxed.
To claim CA you have to be earning less than £139 per week, £139 + £76.75 CA = £215.75 pw which is less than £241.73 pw, your personal allowance, therefore you will not be eligible to pay tax.
Gary
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