Is Carer's Allowance Means Tested?

Carer's Allowance is a crucial benefit for those who dedicate their time to caring for loved ones with disabilities or serious health conditions. Understanding its eligibility criteria, including whether it is means tested, can help you navigate the application process more effectively.

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Is Carer's Allowance Means Tested?

Carer's Allowance is not means tested - your savings do not affect your eligibility for this benefit. However, there is an earnings limit and you must meet a number of specific criteria in order to qualify:

• Caring Responsibilities: You must spend at least 35 hours a week caring for someone.
• Qualifying Benefits: The person you care for must receive a qualifying benefit, such as the Disability Living Allowance (DLA), Personal Independence Payment (PIP), or Attendance Allowance.
• Earnings Limit: Your earnings after tax, National Insurance, and allowable expenses must not exceed £139 per week.

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This setup ensures that many carers can receive financial support regardless of their broader financial situation.

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Is Carer's Allowance Taxable?

Yes, Carer's Allowance is considered taxable income. This means that you must declare it when calculating your total income for tax purposes. If you are already receiving other benefits or have additional sources of income, this could affect your overall tax liability. It's advisable to plan accordingly or seek advice from a financial advisor to understand the full implications on your tax return.

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How Much Can I Earn on Carer's Allowance?

To qualify for Carer's Allowance, you must earn no more than £139 per week after deductions, such as tax, National Insurance, and allowable expenses. If your earnings exceed this threshold, you will not be eligible for the allowance. Keeping detailed records of your income and expenses is crucial to ensure compliance with this limit.

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If you qualify for Carer's Allowance, why not consider the National Carers Card - the easy way to prove your carer status and access exclusive discounts for carers. Apply for yours online today.