Date lodged: 21 March 2018
To ask the Scottish Government, further to the answer to question S5W-14498 by Jeanne Freeman on 27 February 2018, how many people will be liable to pay tax on a payment of Carer’s Allowance Supplement, and how much it estimates will be collected in tax receipts because of this.
Answered by: Jeane Freeman 19 April 2018
It also indicates that individuals required to pay income tax while in receipt of Carer's Allowance may be those with non-work income, such as an occupational pension, or those who give up employment part way through a year to take on a caring role.
This analysis, using Family Resources Survey (FRS) data, suggests it is unlikely that Carer’s Allowance recipients in employment would be subject to tax because of the earnings threshold which applies to Carer’s Allowance. With the increase through Carer’s Allowance Supplement, a carer would have to have weekly taxable income (in addition to Carer’s Allowance) of £154 before they had to begin paying income tax – and the earnings threshold for Carer’s Allowance is set at £120 per week for 2018-19.
HMRC are responsible for operating Scottish income tax which includes the collection of data of Scottish taxpayers. We are in discussions with HMRC regarding this data. However, work by Scottish Government analysts indicates that only a small number of people who will receive Carer’s Allowance Supplement would be taxed on their income.