HM Revenue and Customs (HMRC) has issued an important warning to retirees regarding the simultaneous claiming of the state pension and Carer’s Allowance from the Department for Work and Pensions (DWP). This alert came after a state pensioner reached out to HMRC via the social media platform X, formerly known as Twitter.
The retiree asked: “In December, I will begin receiving my state pension. I have informed the DWP and understand that my Carer’s Allowance will end. Will my income details and tax code be updated automatically, or do I need to notify HMRC? If notification is needed, what is the best method?”
HMRC responded by clarifying that while the DWP informs them about state pension changes, any updates related to Carer’s Allowance must be communicated directly by the claimant. They advised contacting the HMRC helpline via phone, webchat, or post to report such changes.
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It’s important to note that recipients cannot receive both the full state pension and Carer’s Allowance simultaneously. If the state pension amount is £83.30 per week or more, the Carer’s Allowance payments will stop. If the pension amount is below £83.30 per week, Carer’s Allowance will top up to that threshold. Additionally, if the state pension exceeds £83.30 weekly, Pension Credit payments may increase in place of Carer’s Allowance.
Carer’s Allowance is designed to support individuals who provide at least 35 hours of care weekly to someone receiving certain qualifying benefits. The allowance currently pays £83.30 per week, or £4,331.60 annually.
Claimants must ensure they notify HMRC of any changes in their Carer’s Allowance status to avoid overpayments or complications in their tax codes.