If you work
To get Carer Support Payment, your ‘take home pay’ cannot be more than £196 a week. This is about the same as £849 a month, or £10,192 a year.
We'll explain how Social Security Scotland defines take home pay later on in this page. In summary, it's what's left over after you've paid tax, National Insurance and certain expenses.
Social Security Scotland will look at your earnings and expenses to make sure your take home pay is not more than £196 a week. They’ll do this when you apply for Carer Support Payment.
They’ll also tell you how often they’ll review your earnings if any of the following apply:
- your earnings change
- you have expenses that take you above or below the earnings limit
- you’re self-employed
It’s OK if your take home pay is sometimes more than £196 a week. Social Security Scotland can work out how much your average take home pay is. They can do this in different ways to reflect your circumstances. Refer to the following examples.
Averaging your take home pay
If your earnings vary up and down, Social Security Scotland can average them in different ways. The following simplified examples show how they may do this.
They'll look for a pattern to your earnings
For example, if you’re paid a different amount each week and that pattern repeats itself:
- Week 1 - £155
- Week 2 - £130
- Week 3 - £105
Social Security Scotland may average your earnings as:
- 155 + 130 + 105 = £390
- 390 / 3 = £130
If there's no pattern to your earnings
For example, if you’re paid different amounts every month for 3 months:
- April - £500
- May - £700
- June - £750
Social Security Scotland may average your earnings over 13 weeks:
- 500 + 700 + 750 = £1950
- 1950 / 13 = £150
They'll choose a period of time that gives them the best picture of what you normally earn.
Payments that do not count as earnings
These payments do not count as earnings
For example:
- payments from other benefits
- payments from pensions
- student support payments
- fostering fees (also called 'skills payments')
- fostering allowances meant to pay for the cost of caring for the foster child
- contributions towards your living or housing costs from someone you live with who is not a tenant or boarder
- the first £20 a week of any payments you get from someone boarding in your home, including rent payments and contributions towards bills, and 50% of any payments above £20
- income tax refunds
- redundancy payments
Additional earnings
If you get additional earnings, Social Security Scotland will count these.
Additional earnings are income that does not usually show on a payslip or accounts every month.
Examples of additional earnings
For example:
- tips, commissions or bonuses
- earnings from cash jobs
- retainers
- expenses that are not directly for your work but your employer or your own business pays back to you, for example children’s school fees
- earnings from working while based abroad, if these can be brought back into the UK
- payment you get instead of working a notice period when you finish work (sometimes called 'payment in lieu of notice')
- holiday pay you get within 4 weeks of finishing a job
- payment you get instead of finishing an employment contract (sometimes called 'payment in lieu of remuneration')
- payment you get while on leave for sickness, maternity, paternity, adoption, or a baby in neonatal care (sometimes these are part of your main earnings)
- company shares
Expenses
If you tell Social Security Scotland about expenses you pay, they might be able to take these off your earnings.
Expenses you can take off your earnings
Expenses they can take off your earnings include:
- 50% of any money you pay into a pension (occupational, private or both)
- childcare fees you pay so you can work (up to 50% of your take home pay)
- caring fees you pay so you can work (up to 50% of your take home pay). Caring fees must be for the person you get Carer Support Payment for
- necessary costs directly related to your job that your employer or your business does not pay you back for. For example, work travel, work clothes or phone calls. Travel to your usual place of work does not count as an expense
- self-employment business expenses, for example, heating, lighting or cleaning
Take home pay
To work out your take home pay, Social Security Scotland add up:
- your salary if you're an employee
- any income from self-employment
- any additional earnings you get, such as tips or bonuses
From that total, Social Security Scotland take off:
- tax and National Insurance you pay
- relevant expenses you tell them about, such as caring fees you pay so you can work
- 50% of any money you pay into your pension
That calculation is what Social Security Scotland call your take home pay.
Some income does not count towards your take home pay. For example, money you get from:
- other benefits
- pensions
- Income Tax refunds
- student support payments
- fostering fees or allowances
Supporting information
When you apply for Carer Support Payment, Social Security Scotland might ask you to send supporting information about your earnings and expenses. This is to make sure they work out your take home pay correctly. They can help you work out what supporting information you may be able to provide.
If you're an employee
When you apply
You will not usually need to send supporting information showing how much you normally earn. Social Security Scotland usually get this information from HM Revenue & Customs (HMRC).
If you have additional earnings, Social Security Scotland might ask you for supporting information about those.
If you pay expenses that Social Security Scotland could take off your earnings when they work out your take home pay, they’ll ask you for supporting information about those expenses.
If you have an earnings review
You may need to send supporting information again if Social Security Scotland review your earnings or expenses when you’re getting Carer Support Payment.
If you're self-employed
When you apply
If you’ve been trading for more than 12 months and your recent earnings have not significantly changed, Social Security Scotland will ask you to send them your most recent Self Assessment tax return or accounts.
If you’ve been trading for less than 12 months, or your earnings have changed significantly within the last 12 months, Social Security Scotland will ask you to send them your monthly income and expenses.
You’ll also need to send details of any expenses you would like Social Security Scotland to take off your earnings when they work out your take home pay. You’ll need to provide supporting information about some of those expenses.
When you have an earnings review
You’ll need to send supporting information again when Social Security Scotland review your earnings and expenses at agreed intervals when you’re getting Carer Support Payment. Social Security Scotland need to review your earnings because they cannot get your earnings information from HMRC.
If your employment or earnings change
You need to tell Social Security Scotland about any of these changes:
- starting or leaving a job as an employee
- starting or leaving a self-employed role
- changes to the details of your business, if you’re self-employed
- changes to how much you earn
- changes to any additional earnings you have, like tips or bonuses
- changes to relevant expenses you pay, like caring fees or money you pay into a pension
Learn more about the changes you need to report to Social Security Scotland.
Paying tax on Carer Support Payment
HMRC counts Carer Support Payment as income. If your income goes above the personal tax allowance, you may need to pay tax on your Carer Support Payment.