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How is weekly wage worked out? - Carers UK Forum

How is weekly wage worked out?

All about money
Hello all,

My son has been getting Dla since May and we were told to look into carers allowance at the time but I assumed as I was working I wouldn't qualify. Well I have been looking again and it says that you have to earn under £110 a week, my confusion is I earn between £107 to £130 a week(hours change regularly), during term time only with a few odd days in holidays if needed so how would my weekly wage be worked out because I work 39 weeks, 4 weeks holidays pay and that leaves 9 weeks where I earn nothing or very little. So would it be averaged out somehow? Don't want to apply and end up owing them money. Thank you in advance
Hi Sharyn
The DWP will class you as an irregular earner so claiming will be worthwhile but also requires some thought! The earnings limit will be converted to a monthly figure so £110 x 52/12 which from memory without a calculator to hand is around £473.00 per calendar month. Any month your net earnings exceed this you won't get CA for the following 4 weeks.
There is plenty of info on here on other threads of ways to manage this and beat their rules by off setting pension contributions and work related expenses.
Don't let all this put you off claiming.
Yes: I earned maybe £12,500 in 2014/15 - that is over £250 a week , part time, - and still qualified for Carers Allowance.
How did I do it?
Well, firstly I saved a lot of money into my private pension pot : 50% of pension savings are discounted. I save 40% to 60% of all my earnings to my pension, I vary it a bit according to my earnings to keep below the limit. I can get the money back as a lump sum any time I want, so it is a no-brainer.
Secondly work expenses can be discounted from earnings at 100% - and I need a car to work, so rather than run an ancient banger, I decided to take out a pricey brand new personal lease car for three years - mine happens to be electric, which only costs me 3p a mile to run. The lease costs all count as a 100% work-related reduction in earnings, but my mileage expenses pay me back a lot more than that, and again, don't count as income. And I love driving my slick all electric Nissan Leaf, so my indulgence pays off bigtime. It's fun to mix business with pleasure.
Thirdly, tax and NI all can be discounted.
I also claim for all carer-related expenses, and that means keeping all receipts for e.g. theatre tickets and even hot dogs at football matches.. , but it is amazing what caring really costs when you start to add it up ;-)
Yes, with variable earnings you also need to request that a three monthly average be applied.
And if all else fails, the self-employed can make sure that their variable earnings are paid into a business account, and that they only transfer money to their personal account within the earnings limit: the rest belongs to 'the business' ... notionally.
Good luck!
The only limit is your imagination .... let it fly.
But keep it legal, keep it careful, keep all receipts, keep good accounts. Lots of people have been caught out: be smart.
Thank you both for your replies, I think I shall leave it until after Christmas as last month and this month I will be under but in December with 2 weeks holiday pay I will be over the limit. And I don't have a pension scheme just now although I probably should look into getting one anyway. Thank you both for your replies
No problem. The private pension plan is the 'killer app' in my experience, but there are plenty of other loopholes: I must have lost many thousands in unclaimed CA because I didn't bother to read the small print.