Results 1 to 7 of 7

Thread: Carers allowance question

  1. #1

    Carers allowance question

    Hi all
    Hope your all well in this mad world at the moment.
    I claim carers allowance for my husband I also work.
    We have gratuity payment every 3 month( our tips ) do I need to tell anyone about these tips
    Because I haven’t actually earned them I’m not sure.
    Thanks all

  2. #2
    Senior Member
    Join Date
    Mar 2014
    Posts
    1,482
    Yes, I believe they count as income for benefit purposes.....they are taxable too.

  3. #3
    Senior Member nukecad's Avatar
    Join Date
    Jun 2014
    Location
    West Cumbria (Lake District)
    Posts
    9,909
    Technically yes - especially if they appear on your payslip.

    If it just tips given, left on the table, or "keep the change" then the DWP (and HMRC) don't even bother.

    Whether an employer can/should take and share gratuities is a whole different issue for employment law not benefits.

    But if it's on your payslip then it's income and so liable to benefit and tax rules.
    Last edited by nukecad; 09-06-21 at 16:50.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  4. #4
    Thank for for the reply
    They will be on my payslip so how how would they work it out do you know?
    Tips are payable every three months would I lose all my tax credits and carers and have to claim again
    Or would they deduct so much
    Thanks again

  5. #5
    Senior Member nukecad's Avatar
    Join Date
    Jun 2014
    Location
    West Cumbria (Lake District)
    Posts
    9,909
    Looking back at your previous posts I see that, unless you have migrated to UC since February, we are talking about a legacy benefit (CB ESA) and not UC. (The rules are different).
    Then there are your Carers Allowance and Child Tax Credits.

    As you've said that your ESA is Contributions Based then it's not generally affected by earnings or savings.
    However as you are working yourself that will be Permitted Work, and so there is a question of the earnings limit for Permitted Work which is currently £143 a week.
    Normally if your wages for one week exceeded that £143 then you would not get paid ESA for that week.
    But there are rules for 'averaging out' fluctuating earnings such as gratuities - you need to contact ESA to discuss this.

    From the Decision Makers Guidance, Volume 9, chapter 48 'General rules on income'.
    https://assets.publishing.service.go...82/dmgch48.pdf
    48094 The weekly amount of a claimant’s income may be averaged if the income fluctuates and has changed more than once or the regular pattern of work means that the claimant does not work every week. The DM should average over

    1. a complete cycle if there is a recognizable cycle of work (see DMG Chapter 41 on establishing a recognizable cycle) or
    2. five weeks or
    3. another period if this means a more accurate weekly amount can be calculated.
    Volume 9, chapter 49 'Earnings of employed earners', also says that tips should be averaged out to a weekly amount:
    https://assets.publishing.service.go...43/dmgch49.pdf
    Tips
    49129 Tips are expected in some jobs, for example hairdressers, waiters and bar staff. They may be made because of the services rendered by the employee in the course of the employment. The average weekly amount of any such tips received should be included in the calculation of earnings. Do not include tips made as gifts on grounds that are personal to the recipient and unconnected with the employment.
    Note that bit about 'tips made as gifts', it means that tips given straight to you by the customer don't count, only tips/gratuities/service charges that go through the employer (and so appear on your wage slips) count.


    The Carers Allowance income limit is lower at only £128 a week.
    So technically you can only work 14 hours at mimimum wage and still get CA - 14-1/2 hours would pay too much.
    However you can also offset some of your earnings before they are counted, for example - Up to 50% of net earning can be deducted towards the cost of alternative care for the disabled person, or a child under 16, while the carer is at work.

    Again if your go over that limit the CA should not be paid for that week, but again if your earnings fluctuate the DWP can assess your earnings over a period of time – again you need to contact them to discuss this


    Child Tax Credits are administered by HMRC (the taxman not the DWP) and the earnings limits there are annual, so in effect any gratuities will already be averaged out over the tax year along with your normal wages.

    A lot is going to depend on just what your 'normal' wages are and then how much each of these 3-monthly gratuity payments is for.
    Obviously if the gratuities vary then it just makes things more complicated and you'll have to tell the DWP how much you got each time. (The taxman should already know as your employer should have reported your wages).

    PS. If for some reason the benefits were stipped then:
    Child Tax Credits you can no longer make a new claim for, it would have to be UC instead.
    CA could be reclaimed if that was stopped. (But it would then simply be deducted £ for £ from UC if you'd claimed that - but you would also get UC Carer Element).
    ESA is a bit more difficult to say - If you have paid enough NI in the 'qualifying years' (usually the last 2 tax years) then you could claim New Style ESA, if not then it would have to be UC.
    Last edited by nukecad; 10-06-21 at 10:09.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

  6. #6
    Thank you so much seems a lot of hassle for £200 to £250 every couple of months hubby’s on cb esa I work and we we child tax credit and careers I only 14 hours aweek.
    Do you know anything about ad hoc ?

  7. #7
    Senior Member nukecad's Avatar
    Join Date
    Jun 2014
    Location
    West Cumbria (Lake District)
    Posts
    9,909
    Ah sorry, I thought that it was your ESA - if it's your partners then that changes things.

    If it's your partners CB ESA, and is CB ESA only (£114.10 a week), then forget what I said above about the Permitted Work, PW only applies to work that the claimant is doing.

    The earnings of a claimants partner do not affect CB ESA at all, so you have no worries there and don't even have to tell the DWP.
    (Unless it's also partly IR ESA in which case it will be more than the £114.10 a week, can you tell us how much ESA he gets a week/fortnight?)

    For CTC then as said above HMRC administer those and will already know about the tips if they are on your wage slips, and so will already be taking them into account and you shouldn't need to do anything there.
    They look at the total of how much you earn in a year, so anything fluctuating in your wages, like tips, will already be included.

    That leaves the CA which will be in your name and so could be affected, you should still talk to CA about that.

    Not sure what you mean by 'ad hoc'?
    In terms of wages 'ad hoc payment' is just another term meaning a non-fixed variation to your basic wages, such as a varying payment for gratuities like this.
    I don't know everything. - But I'm good at searching for, and finding, stuff.

    Migration from ESA to Universal Credit- Click here for information.

Similar Threads

  1. attendance allowance and carers allowance
    By cookgeorge2 in forum Benefits - help & advice on disability benefits, incapacity benefits, ESA and DLA
    Replies: 2
    Last Post: 17-08-19, 10:54
  2. Carers allowance versus Carers Premium
    By David69 in forum Benefits - help & advice on disability benefits, incapacity benefits, ESA and DLA
    Replies: 4
    Last Post: 01-04-17, 16:04
  3. Carers allowance. Does your savings affect your entitlement to Carers allowance?
    By karljt in forum Benefits - help & advice on disability benefits, incapacity benefits, ESA and DLA
    Replies: 2
    Last Post: 08-04-15, 15:16
  4. Attendance allowance and carers allowance
    By pg1973 in forum Benefits - help & advice on disability benefits, incapacity benefits, ESA and DLA
    Replies: 5
    Last Post: 11-11-13, 09:52
  5. Disability allowance and carers allowance help
    By Amc2 in forum Benefits - help & advice on disability benefits, incapacity benefits, ESA and DLA
    Replies: 2
    Last Post: 06-03-13, 20:26

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •