returning to work 16 hours - wages and benefits

All about money
I am retuning to work 16 hours on zero hours contract for flexibility due to my caring role - but the ugov site in terms of what I can earn before my carers allowance is affected says £123 after deductions. What actually is that gross for a 61 year old ie tax and ni contribution? so I can work out what my employer should pay me so I dont shoot myself in the foot. My employer is willing to pay me what is necessary as I used to work for them full time.

Will my paid NI credit of the carers allowance stop once I start back at 16 hours ?
Hi Margaret ... welcome to an extremely quiet forum as I type.

For once , what's inside the can matches the label ... £ 123 per week NET :

Carer's allowance earnings limit rises to £123 per week from today ( 6 April 2019 ).

Carer's Allowance is the main benefit for carers. You can still get it even if you are working, so long as your earnings are no more than a weekly amount known as 'the earnings limit'.

From today the earnings limit will be going up to £123 per week.


For a brief guide as to what expenses can be DEDUCTED from earnings to stay within said limit :

https://www.entitledto.co.uk/help/Carer ... ated-costs

( The private pension route is favoured by many. )

NI contributions ... a brief guide :

https://www.litrg.org.uk/tax-guides/dis ... nce-carers

For the cherry on the top , an online benefits calculator ... also ensures that no hidden horrors are revealed if taking up paid
employment ... effect on any other benefits ???

https://benefits-calculator.turn2us.org.uk/AboutYou


( Many of my immediate neighbours are on zero hour contracts ... and under Universal Credit ... an absolute nightmare when
considering whether to take on additional hours whwn balanced against a decrease in benefits / increase in childcare costs for
doing so. )
Hi Margaret
A weekly net of £123 would very unlikely incur any income tax or NI contributions because it is well under the thresholds for those. (£240 and £166 respectivley) The only exception I can think of would be if you owed Income tax for previous years that is being repaid through your tax code.

Your employer would just need to be aware of minimum wage which is £8.21 so 16 hours would give you £131.36 a week so you'd need to pay £17 into the company pension scheme (probably automatic enrolment and you specify the amount, don't accept the percentages as they would probably be too low). That way you take home would be £114.36 which DWP would accept as they allow 50% of any pension contributions.
Or you could pay it into a personal pension scheme

You won't loose out because that £17 is in your pension pot, employer will add to it too, . As you are over 55 you could draw it straight back, as pension or let it grow for a while until you need it. DWP doesnt count pension income as earnings (might need to double check this)

Or work 14.5 hours at £8.48 to earn £122.96 , simplest :idea:

Hope this helps
MrsA
Hi Mrs A

thanks for your info very helpful. Just need clarification if you can about your reference to thresholds £240 & £166 respectively - is this added together to find out the pay limit and then work back from that as deductions - so confused .

Appreciate you taking the time.

M
£ 240 / £ 166 limits ?

Income Tax and National Insurance thresholds respectively.

For example ... earn £ 165 gross per week , no Nationatial Insurance payable.

Earn £ 239 per week ... National Insurance payable but no Income Tax.

If claiming any other benefits , be very wary of the effects on those ... amplified by my first reply.