Carers' Allowance is not awarded if your net earnings are more than £95 per week. This limit rises every April.
There are a number of allowable deductions that can be made when calculating your net income:
- National Insurance contributions;
- Income tax;
- Expenses "wholly, exclusively and necessarily incurred in the performance of the duties of the employment";
- "One half of any sum paid by you in respect of a pay period by way of a contribution towards an occupational or personal pension scheme;"
- Any payment made to you by someone who normally lives with you (other than as a boarder or sub-tenant) which is a
contribution to that person's living and accommodation costs;
- £4 from any rent paid to you by a sub-tenant and a further £9.25 if heating is included in the rent;
- The first £20 paid of any board and lodge paid to you by a boarder plus one half of the remainder;
- Any fostering allowance;
- Any payment made by a health authority, local authority or voluntary organisation in respect of a person who is not
normally a member of your household but is temporarily in your care;
- "Any earnings derived from employment which are payable in a country outside the UK for such period during which there is a prohibition
against the transfer to the United Kingdom of those earnings";
- Any banking charges or commission paid in order to convert foreign earnings into sterling;
- Any annual bounty paid to part-time members of the fire brigade, lifeboat service, auxiliary coastguards or a territorial or reserve force.
The regulations also allow you to deduct up to 50% of your net earnings if this is paid to someone other than a close relative to care for a child under
the age of 16.
