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can i pay my daughter to sit with wife - Carers UK Forum

can i pay my daughter to sit with wife

Share information, support and advice on all aspects of caring.
i'm falling foul of carers allowance rules and don't want to mess about with a stakeholder pension,i thought i had it sorted when i finally found employment for 16 hours locally that would pay me £100 net wages a week,that is till i spoke to carers allowance helpline who explained to me that because it's monthly pay and 5 x £100 is not acceptable and it needs to work out to £433.33 a month(god knows why),i wondered if i could pay my daughter to care for her to lose some of the total even though she still lives at home because she is allowed to work part time and still be within the rules for young persons child tax credits,it makes you wonder why people bother to work and not just live off the state or be self employed,malc
Yes because God forbid that you should earn 500 pounds a month because in a five week month you would earn slightly over the "allowed" amount and the Gov. dont want that. Image
i meant to also state that it took me 6 years to find this job and it now means i don't have to travel 100 mile to leicestershire to drive a taxi part time where i could limit my earnings to £100 because it was self employed,my wife is 41 with alzheimers surely the carers allowance people should have a concept of what carers go through,malc
When I first enquired about getting a carer's allowance to look after my mother as she was classed as disabled before a certain age, I was told I would get about £50 a week to be a full time carer for both parents. But when I mentioned about working a few hours a week to get extra I was told that any money I earned would be taken off my allowance. I wouldn't get any money if it was just to look after my parents because they are old, only through my mother being classed as disabled. And that £50 would be the same whether I cared for one or 20 disabled people.
I'm pretty sure that I'm right in saying that Carer's Allowance was never meant to be a substitute for a 'wage' but was introduced in 1975 (ICA) to supplement loss of income due to caring (Matt can put me right on this if I'm wrong) and was regarded as 'pin money' by the powers that be.

Scally could probably answer your question as to wether you could reduce your liability by paying your daughter to sit with her Mum as he's worked out various ways of legally reducing earned income (pension contributions, expenses etc).
i finally found the information at about 1am,it says not a close relative,so going to ring them to ask about the car on the grounds that i can't use the van with disabled tax on because it's for transporting the disabled person only and i use the 406 solely for work purposes,my mobile phone,buying of a sat nav so i can find the houses(some in the middle of nowhere),and if anybody has any other ideas please let me know,malc
you'd probably need to check out this out in some detail but if you are self employed u set up your own company, deduct all your outgoings from turnover, pay yourself a pittance (to stay under the CA requirement level) and technically keep the rest invested in the company. or put your daughter on the board and pay her dividends, on which you really live.
Scally has posted a lot of information here:maximising CA
i think i'm sorted,my new employer willing to pay me slightly less because i will pay hardly any tax,then pay me weekly,thank god for that,what a lot of hassle all because the system is rubbish,malc
Yes, you cannot employ close or co-resident relatives.

Setting up a small private pension plan, or using your employers scheme if they have one, may be the best bet if you earn between £100 and £150 a week after tax: as you can discount half of your contributions. So if you earn say £130 and can save £61 of that into a private pension plan then £30.50p is discounted, meaning you receive £55 CA: however, be aware that you may have to pay tax on your CA taking it down to £45. End result, you have £69.50p plus £45 = £114.50p in hand: so you are £15.50p worse off in cash terms, but you have saved £61 into your pension, which is then topped up by the government by 20% taking it to £72. So if you can afford to take the long view, and have enough coming in to live on from other sources such as a spouses earnings, there is no doubt this is by far the best option. Its £10 a week better if you aren't paying 20% income tax on CA of course: some small earnings will fall below this but it depends if you have other unearned income which takes you above the threshold such as an occupational pension from a former job or earnings from investments.

If you are say 60 now, and run this kind of system for the next five years, then the lump sum alone will probably be as great as the small weekly deficit you have accrued: leaving you substantially better off in this scenario with a pension pot of several thousand pounds.

Is it worth it?
Based on the example above: on maturity of the pension (i.e when you reach 65 or later) , you can take back 25% of your pension funds as a tax free lump sum, the rest has to be converted into an annuity. You have saved around £19,000 over five years, and so the tax free lump sum will come to nearly £5,000, which is significantly more than your sacrifice of pay over the five years of around £4,000: and you will still have £14,000 in your pot which might generate a nice steady small annual pension of maybe £30 a week or so until you finally decide to depart to that great counting house in the sky. So yes, its a great plan if you can make it work.

If your earnings are variable, you can usually make variable pension payments into your pension scheme to adjust for this: it doesnt have to be a fixed percentage of salary.

It shouldnt matter whether you get paid weekly, monthy or fortnightly, the DWP will average it out anyway over a period of five weeks or more.