Claiming carers allowance when IT Contractor and unable to work.

[swebb]

Hi, I'm writing this as I can't find any info on the subject elsewhere using google.

My mother was diagnosed with Alzheimer's about 6 months ago and my father died around the same time. Being the only child I've been sorting out all my fathers estate and also having to look after my mother. I've basically been living at her place near enough full time, sorting everything out, making sure she is ok, cooking ..... you get the drift.

I had to give up a contract when this all started and haven't been doing any work since and for the foreseeable future I can't see me picking up any work. I've now more or less sorted my mother's finances out (Attendance Allowance, pension, savings ...) but not done anything about my own. I've been paying myself a PAYE or around £750 a month and taken one dividend payment. This has tidied me over.

I've just been looking in to carers allowance as everyone was telling me I should be looking to get it as I'm spending over 35hrs a week looking after my mother. It looks like if you earn over £132 a week then you are not entitled. This is a bit of a pain obviously because of my PAYE payment. I'm basically gradually reducing any money in my company, paying an accountant and so on but that can't last forever.

Should I consider stopping the PAYE payments so I can get carers allowance or are there issues with this. Not sure about the situation with dividends. Ideally I don't want to shut the company down as the my situation might change and I might be available in future to do some reduced hrs work (maybe!!!).

Any advice greatly appreciated.

[ladymuck]

Should have posted this in Accounting rather than General...

Your company doesn't have to have a PAYE scheme, and it's fine to not run one and just pay out dividends from retained profit but do talk it over with your accountant. You can't just stop, you have to close down the PAYE scheme so HMRC stop expecting the RTI filings. Fail to do that and you'll start racking up fines.

Does the carers allowance mean you can reduce how much you draw down from your company and so stay afloat a little longer? Or are you expecting to take the same amount of money out, just not via PAYE, and increase your overall income?

[ladymuck]

Oh and did you get Power of Attorney in place before your mum was diagnosed? If not, it's going to be more difficult to get it through but it'll make your life a heck of a lot easier. The wait is excessively long sadly but you really ought to kick off the process if you haven't already.

My Mum has 'memory issues' according to her GP but no diagnosis beyond that as she's on a waiting list for formal assessment. My Dad also died about 6 months ago, and last week the wonderful people at Office of the Public Guardian acknowledged the POA form I sent in August (a month before he died, he went downhill a bit quick). My Mum's form was in the same envelope and they awarded that at the end of January.

[quackhandle]

+1 for the POA. Things are hard enough even when you have it, if you don't then that can be a whole world of tuliptyness.

qh

[swebb]

Does the carers allowance mean you can reduce how much you draw down from your company and so stay afloat a little longer? Or are you expecting to take the same amount of money out, just not via PAYE, and increase your overall income?

Must admit I hadn't got that far in thinking it all through. However I have some savings so I will probably just cut the PAYE.

As you say I should contact the accountant about the PAYE.

Thanks

[northernladuk]

Might be worth considering which part of the forum you are posting in. You've posted in General which is clearly titled 'All hope abandon ye who enter here. Seriously.' and a cursory glance will tell you there are absolutely no contracting questions in here.

The prof forums are badly heavily moderated. It's open season in here I am afarid.

[swebb]

Oh and did you get Power of Attorney in place before your mum was diagnosed?

yes luckily for health and finances. So I've got control of everything luckily. I've also got the probate sorted for my father, took 6 months but apparently that's quick!

[swebb]

Now posted on accounting thread, thanks for the responses here

[vetran]

Sorry to hear that Swebb its horrifying to confront the mortality of your parents or even your in laws. I hope you get help for the emotional turmoil.

POA is a good move, sadly the government doesn't do well supporting its citizens in their slide to extinction, don't take it personally just get what you can or need.