Your Earnings and the Carer's Allowance

You will not be awared the Carer's Allowance if you earn above £95 a week (this limit changes in April every year).

These are the allowable deductions when calculating your net weekly income:

National Insurance contributions; Income tax; Expenses "wholly, exclusively and necessarily incurred in the performance of the duties of the employment"; "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"; payment received by someone who normally lives with you, other than as a lodger or sub-tenant, which is a contribution to that person's living and accommodation costs; £4 of 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 lodging fee paid by a boarder.

Plus one half of the following:

Payments 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 fostering allowance; "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 transfer earnings in foreign currency into Pounds Sterling; annual bounty paid to part-time members of the lifeboat service, fire brigade, auxiliary coastguards or a territorial/reserve forces.

You are also permitted to deduct up to 50% of your net earnings if it is paid to someone other than a close relative to care for a child under 16.

Click here to return to the main Carer's Allowance information page.