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mother paying daughter to care for her

mother paying daughter to care for her

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My client's mother needs a carer.  Rather than pay for carers to come in, my client has given up her job and moved in with Mum to look after her.  Mother has agreed to pay her.

How would you do this?  Should Mum set up a paye scheme (seems a bit expensive and ott for the family).

Or could mother just make gifts to the daughter each month which happen to be similar to the salary she has given up?  (IHT is not an issue).  Siblings are all happy with the arrangement and would not challenge any such payments.

How have others dealt with this?

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By LyneT
24th Jun 2014 17:43

I would first of all make sure that mum has claimed attendance allowance if she has substantial care needs (which it sounds as though she has)

If mum claims AA then daughter can claim carers allowance.  CA is supposed to "compensate" someone for giving up their job to care for someone who claims AA.  I have tried to post a link to the www.gov.uk website, but cannot.  Just google "carers allowance"

CA has an earnings limit, so if mum pays daughter over £102 pw, then CA is lost so make sure mum does not pay daughter over that amount as a wage.

CA is not affected by gifts.

 

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