A person asked if their tax code would be affected
HMRC has shared guidance for state pensioners regarding a change in their payments. The issue came to light as a person contacted the tax authority, as they would soon start receiving their state pension.
They said: “In December I start receiving state pension. I’ve notified DWP of this and Carer’s Allowance will end. Do you update my income details and tax codes automatically or do I need to notify you and if so how is best way?”
Carer’s Allowance supports people who provide care for a person for more than 35 hours a week, if the person who receives the care gets certain benefits. The DWP benefit pays £83.30 a week, or £4,331.60 a year.
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If your state pension is less than Carer’s Allowance, you can be paid the difference in Carer’s Allowance. For example, if your state pension was £60 a week, you could get £23.30 a week in Carer’s Allowance.
If your state pension amount is higher than the benefit, you won’t be eligible for any payment through Carer’s Allowance. However, it may still be worth applying so you can get an ‘underlying entitlement’, to show you meet the criteria for the allowance.
This shows the DWP you are still a carer and so you may qualify for some other benefits. In response to the taxpayer, HMRC said: “The DWP will tell us about the state pension, but you should tell us about any change to the Carer’s Allowance. You can contact the helpline either by phone, webchat or post.”
They directed the person to a page on the Government website with contact information for income tax queries. You can call HMRC on 0300 200 3300. Lines are open Monday to Friday from 8am to 6pm.
If you are a carer of state pension age, you may also be able to get some extra cash through Pension Credit. The benefit tops up a person’s income, up to £227.10 a week for single claimants and up to £346.60 a week for couples.
If you care for another adult, you can get an extra £46.40 a week. You can get this if:
- You get Carer’s Allowance
- You get Carer Support Payment
- You’ve claimed Carer’s Allowance but are not being paid because you already get another benefit paying a higher amount.
If both you and your partner have claimed or are receiving Carer’s Allowance, you can both get this extra amount.
