Carer or Care Worker? A Quick Guide to Tax Refunds & Benefits

What's it all about?

This article's designed to help you:

• Understand what we mean by Care Worker
• Find out what Care Worker's are entitled to claim
• Start claiming your tax refund

We know you’re busy! Looking after a family member or being a professional Care Worker is a demanding job. In either case, you’re doing essential work at the heart of society and in our communities, ensuring people have the best possible quality of life.

So, we thought we’d take this opportunity to help look after you! And your money…

Lots of people get overwhelmed by the thought of managing money. So if that sounds like you, you’re not alone. And if your care work leaves you feeling like you don’t have time to look into what you’re entitled to, our short guide will help to clear things up.

If you’re a Care Worker, read on to find out how you might have a tax refund waiting…

As they say, look after the pennies and the pounds will look after themselves. And a few pounds extra will help to take a load off!

Let’s start with you…

Are You a Carer or a Care Worker?

Care work is rewarding work, whether you’re doing it for a family member or as your main job. It’s also demanding work!

A Carer is typically someone who looks after a family member, a neighbour or a friend. You don’t have to be related to the person you look after. 

The person you look after can require care for any reason. Perhaps they are elderly or have a disability. They may have long term illness, a mental health condition or drug or alcohol dependency.

If you’re a Carer, you may qualify for an allowance or reliefs may be available.

A Care Worker is employed by a company, agency or charity. You’ll have regular shifts/hours that you work, full- or part-time. As you get paid for your work, you can’t claim Carer’s Allowance but you may qualify for tax relief or tax refunds on things like travel expenses.

I’m a Carer – Can I Claim Carer’s Allowance?

If you care for someone, even if you’re not related to or live with them, you could qualify for Carer’s Allowance.

In 2022/23, the rate for Carer’s Allowance is £69.70 per week.

To be eligible, the person you care for must receive one of the following benefits:

• Middle or higher rate DLA (Disability Living Allowance)
• Any rate of Attendance Allowance
• The daily element of PIP (Personal Independence Payment)
• Armed Forces Independence Payment

And you must meet the following criteria:

• You care for them at least 35 hours a week
• You’re over 16
• You’re not at school, college or university full-time
• You take home less than £132 a week after tax, NI and expenses

If you tick all the boxes, find out how you could claim Carer’s Allowance here.

You can only claim once, even if you are looking after more than one person.

I’m a Carer – Do I have to pay tax on Carer’s Allowance?

If Carer’s Allowance is your only income, you won’t have to pay tax on this claim.

However, the allowance is taxable and must be counted in taxable income. So, if you have income from another job or, for example, a personal pension, and that all adds up to more than the personal allowance (£12,570), then you will owe tax.

If you’re an employee, your employer will pay your tax through PAYE. If you have other incomes, you’ll have to declare these by filing a Self-Assessment tax return.