Carer's allowance
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Carers allowance and income

snugglysnuggly Member Posts: 8 Listener
edited April 2018 in Carer's allowance
ok I am really confused.
my brother and I was left my late aunts house as I had also inherited money I could not then claim esa anymore .i did everything by the book rang the dwp as soon as I knew I was inheriting .they said I was still entitled to carers allowance as it was not means tested.
my brother said we should form a limited company to rent this house out it said it safe guarded us .
for nearly the first year I got £400 a month rent my half . Then when the corporation tax bill came in and account bill my brother said we will each leave £50 a month in the business account to pay these bills next time so I get £350 a month now.
then I’m taking in a lodger charging £125 a week rent including bills .
then I got a letter from the carers allowance saying there was a increase but usually I just read the first bit but my friend read it and said I should had told them I was a director and I wouldn’t get carers allowance I went into a complete panic you see I suffer from mental illness and I don’t read letters right the way through as I have little understanding this limited company I didn’t understand but trusted my brother and just signed documents to form this limited company.he kept saying we pay ourselves divends it’s not rent as such I hadn’t a clue what he meant.
anyway I was near meltdown so I rang the cab advice line where I’m told it doesn’t matter how much I get from this rent the carers allowance people aren’t interested in that just being a director of this limited company meant I can’t claim carers. That was it I was in tears thinking of all the money I would have to pay back they would never believe I really genuinely didn’t understand. As far as I knew the dwp told me it wasn’t a means tested benefit.
the cab advice line was going on about investment income is ok but being this company it wasn’t investment income.
so I took two diazapan before ringing the carers allowance people I couldn’t had got anyone more nicer on the phone he said the cab told me wrong and not to worry I told him about taking in a lodger to and how much I would get a week from that but he said no it won’t affect my carers allowance and no I’m not in trouble because as soon as I found out about  notifying them about being a director I have rang then to tell them I think he could tell I was a nervous wreck. 
He said all they will do is send some forms out for me to fill in about this limited company .
i think he was amused when he asks how many houses do we rent out and I said just the house we was left . 
Im hoping he had told me right he said they are not stopping my carers allowance .
its so confusing they say you can only earn so much but with the income I get I don’t actually do any work . 
So I think they mean they will be classing it all as investment income. 


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