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Why are earnings limited to £110 - claiming carers allowance - Page 2 - Carers UK Forum

Why are earnings limited to £110 - claiming carers allowance

All about money
Scally wrote:The easy answer is that they aren't. But you need to be as devious as a fox to use the rules to earn more.
I'm that fox: I have been testing the rules for years, and found that there are many ways around them: simply because the people who draft the rules are trapped in their own logical mind maze, and we aren't.

Earn £12,000 a year, for example, roughly £250 a week. Sure, you can still claim CA, as long as you play the rules. Discount income tax and NI, pay your next door neighbour's cousin to provide childminding/care, lease a car you need for work, pay a lot of money into your pension, and you are home and hosed.

If self employed, then the world is your oyster: earn £20,000 a year profit after expenses, pay your husband and child £9,000 a year each for secretarial and domestic help, and you are well below the earnings limit.

I didnt know any of this stuff until I started to study our MPs expenses. They are the real experts at using the system to their advantage.
Scally could you advise me what proof I would have to give if I paid a friend weekly for childcare and if they contacted her what evidence she would need to give of this as I pay her cash ?
Josie_1612 wrote:
Scally could you advise me what proof I would have to give if I paid a friend weekly for childcare and if they contacted her what evidence she would need to give of this as I pay her cash ?
I'm sorry: I cannot help much here (and see the disclaimer below). They have asked me in the past for the names of people that I pay, and they may well check up on them to see if they are declaring their earnings: I honestly do not know. I ask for an invoice: I pay on that basis. That's all the proof anyone needs.

Most of our casual - part-time - workers, do not need to pay tax or national insurance anyway, if they are earning below the threshold. eg, I employ students: they do not earn above the tax and NI threshold. We can employ a payroll agency, which is not cheap, hire staff off a care agency, which is very expensive, or just hire and pay people on a self-employed, invoice, basis, pay them about 20% extra above the local rate to allow for holiday, pension and sickness pay, leaving them to register as self-employed and turning a blind eye. This is putting out the boat a bit, but not technically illegal: bear in mind that if you are risk-averse, and they acquire employment rights, they might claim unfair dismissal or take you to a tribunal at some point if you fall out badly, but then, so might regular employees and the damage will not be vastly different : it relies on common sense to make the call. Personally I am happy to take the slight risk, and the hit if it comes to that. Some people will not be: your call.