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Starting a business and carers allowance

Posted: Wed Dec 26, 2018 9:00 pm
by Carers_1809
I currently earn about £520 a month. I want to start a business, does business income come in to the earnings limit? As in, we are allowed £520.04 a month max, so if I earn a little more from the business a month, can I still get carers?

So my employment gives me £520 a month and then my business would give me around £40 extra a week, so a bout £160 on top of £520. Does the limit of carers get affected by business earnings or is it just employment?

Re: Starting a business and carers allowance

Posted: Wed Dec 26, 2018 9:19 pm
by Chris From The Gulag
Both ... to be £ 123 per week however it's made up ... self employment and / or paid employment.

Recent DWP purge on that very aspect :

https://www.carersuk.org/forum/support- ... read-34576


Self employment + carers allowance ... different ball game compared with being employed and claiming carers allowance.

For initial guidance ... an earlier thread :

https://www.carersuk.org/forum/post/edit?f=17&p=353113

Quite a bit out there Internet search wise ... CARERS ALLOWANCE AND SELF EMPLOYMENT ... several other forum postings plus direct advice from such organisations as Turn2Us / MoneySavingExpert / LowIncomeTaxReformGroup.

Have a read of some of those links ... self employment from many angles ... including the various deductions out there against tax ... watch out for those that count against tax but not for deductions when computing limit for carers allowance.

Quick guide for what expenses are tax deductible :

https://www.which.co.uk/money/tax/incom ... j250c7672j

IF only claiming carers allowance , and no income related benefit , the dreaded Universal Credit would not kick in.

Universal Credit and Self Employment = chalk and cheese ... in essence , they hate each other !

Being self employed with an accountant familiar with all aspects of the benefit system is a major plus !

Re: Starting a business and carers allowance

Posted: Wed Dec 26, 2018 10:02 pm
by Carers_1809
Chris From The Gulag wrote:
Wed Dec 26, 2018 9:19 pm
Both ... to be £ 123 per week however it's made up ... self employment and / or paid employment.

Recent DWP purge on that very aspect :

https://www.carersuk.org/forum/support- ... read-34576


Self employment + carers allowance ... different ball game compared with being employed and claiming carers allowance.

For initial guidance ... an earlier thread :

https://www.carersuk.org/forum/post/edit?f=17&p=353113

Quite a bit out there Internet search wise ... CARERS ALLOWANCE AND SELF EMPLOYMENT ... several other forum postings plus direct advice from such organisations as Turn2Us / MoneySavingExpert / LowIncomeTaxReformGroup.

Have a read of some of those links ... self employment from many angles ... including the various deductions out there against tax ... watch out for those that count against tax but not for deductions when computing limit for carers allowance.

Quick guide for what expenses are tax deductible :

https://www.which.co.uk/money/tax/incom ... j250c7672j

IF only claiming carers allowance , and no income related benefit , the dreaded Universal Credit would not kick in.

Universal Credit and Self Employment = chalk and cheese ... in essence , they hate each other !

Being self employed with an accountant familiar with all aspects of the benefit system is a major plus !
£123? Isn't it £120 a week? Whats the max monthly allowance?

Re: Starting a business and carers allowance

Posted: Thu Dec 27, 2018 8:23 am
by bowlingbun
Having run a small business, it is VITAL that you understand the difference between income and profit.
HMRC do a list of what can be deducted, workwear, an allowance for heating and lighting, laundry, all sorts of things. Print off the list and keep it with your accounts.
BEFORE you start, make sure you know what information HMRC will want at the end of each year. If you keep your list of expenditure in exactly the same order as they will want at the end of the year, it will save you an awful lot of time!
My other tip would be to work out exactly how much you have earned, and spent, on a MONTHLY basis.
Then add each end of month figure to the previous months total. Then at the end of the year you are just adding the total of the last month to the previous 11 months.
(I used to run the accounts for a hospital in Australia in the days before computers, so all done on paper. When my husband and I later ran a small business in the UK, I ran our own accounts in the same way. After a "spot check" from HMRC they wrote and complimented us on the way we kept our accounts!!!)

Re: Starting a business and carers allowance

Posted: Thu Dec 27, 2018 8:34 am
by Chris From The Gulag
Soon to be £ 123 following the Budget ... £ 120 until April 2019.

Monthly ... £ 120 x 52 / 12 .... £ 520.