Carer’s allowance claim v rental income

Carer’s allowance claim v rental income

11:02 AM, 18th May 2021, About 3 years ago 11

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I am looking to make a claim for carer allowance, having had to retire at 63 and to move back home to care for elderly ill parents. My company pension is not included in the rules for carer allowance.

However, rental “earned income” is and there are questions about it in the form. Having googled various sites, as usual, it seems there is no direct clarification from the DWP, and it is a decision maker’s right to make the call. From what I have read if my properties were in a Ltd company then they would be regarded as earned income as their rents exceed £110 in total pw I could not claim the allowance (they are not in a Ltd company, they are just mortgage free and held by me).

As they are held by me alone then my understanding is that the rents are regarded as investment income, which is not included for carer allowance purposes. Anyone on here been in the same boat?

If anyone is questioning why I would even claim the allowance it is because I will not receive a state pension until age 66 but if I am awarded the allowance the “stamp” continues to be paid for me up until age 66. Having worked full time for 47 years and paid the full amount of NIC “stamp” I am not inclined to forego some of the state pension.


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9:18 AM, 22nd May 2021, About 3 years ago

I have claimed CA and had rental property for years, up until when I got my OAP and my partner took on the caring role and claimed CA on his early retirement.

At one point I had two places, although not in a Ltd Company and was therefore not a Company Director. Although both were intended to be my home at some point I wasn't able to live in one of them, it was purely rented as the person I cared for wasn't able to climb the stairs. I phoned and discussed this with the CA office and because the rentals were managed by a letting agent and I wasn't a Company Director, they were not regarded as 'work' but investment. I was totally 'hands off'.

I got advice from Carers UK (free on the phone) as I wanted to move into one of the flats and thought I might have a lodger. In that case, regardless of what I did or didn't do as part of the service for the lodger, this would have been considered income (still allowable up to the CA earning limit minus expenses).

The CA unit agreed in writing that I could have two 'hands off' rental properties for income, one my ex-home and the other the one I had hoped to move to. After all, how else could I affort to stop working and have less than £70 a week to live off!!!

BTW, being a Director of a Freehold Management Company when you own a share of the Lease on a flat you are letting doesn't count as being a Company Director as it's not a money making company, I was told.

If you can't actually get paid CA you should still have the NICS benefit towards your OA Pension.

Suggest you get advice from Carers UK about how you set things up. It may be that if your rentals are in a Ltd Co you are disqualified but do check the Carers UK who will give you the right legal advice as the CA benefit shouldn't stop you having enough to live on like the rest of the benefit system seems to do, savings and investments are exempt and it's not means tested, and you are allowed to work and earn up to a limit. You do need to be Caring for 35+ hours a week and not in FT education though.

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