I've coined a new phrase. A Klarna chameleon.
It can be sung to people along with the popular Culture acting song Karma Charmelon.
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It describes people who use short term debt to buy clothes to appear more affluent than they really are.
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I hope you like it, feel free to use it, I hope the phrase and song spreads
Hi all
For most claiming Carers allowance in England, although carers allowance is a taxable benefit, for most tax has never been a problem - perhaps until now.
With carers allowance now £86.45 week - £4,495.40 year, the CA earning limit set at £204 per week- £10,608 year, and the lower rate tax threshold set at £12,570.
Someone working 16 hours a week on minimum wage (£12.71×16hours×52weeks) will skirt the earnings limit earning £10,574.72, and combined with carers allowance will overshot the tax threshold, meaning part of their earnings will be subject to tax;
( £10,574.72 + £4,495.40 ) - £12,570 = £2,500.12 taxable. ( Earnings + CA) - Tax threshold = taxable.
This means tax could now be owed on £2,500.12 = £500.02 tax owed.
My question is, if you claim and work 16 hours, assuming you dont put money in a pension, are you aware of this? And if you are, or aren't - what is your tax code?
Because CA is a taxable benefit, HMRC can 'code out' your CA through your tax code. I.e. that tax code of 1257 (£12,570 tax free allowance) can be reduced to 757 (£7,570) meaning that your earnings are taxed sooner.
I'd like to know your tax code, to see how many people have it coded out, but it's also a leading question, as I'd also like you to check.
If its not coded out, and you work 16hours a week, you could be faced with a nasty £500 tax bill next year- so best to check now!
As you are a low earner, and when HMRC discover your code is wrong, they won't code it out during a future year, they'll come for it by way of an unexpected bill to be paid in January the year after with less than 12 months for you to save and pay this back.
My advice would be; make sure your employer knows you get carers allowance, and make sure that your tax code is adjusted down to account for carers allowance now!
2026/27 — Earnings: £204/wk (£10,608/yr) | Carer's: £4,495 | Total: £15,103 | Tax Owed: £506.60
2025/26 — Earnings: £196/wk (£10,192/yr) | Carer's: £4,324 | Total: £14,516 | Tax Owed: £389.20
2024/25 — Earnings: £151/wk (£7,852/yr) | Carer's: £4,259 | Total: £12,111 | Tax Owed: £0.00
Prior years 0 tax
Hi all
For most claiming Carers allowance in England, although carers allowance is a taxable benefit, for most tax has never been a problem - perhaps until now.
With carers allowance now £86.45 week - £4,495.40 year, the CA earning limit set at £204 per week- £10,608 year, and the lower rate tax threshold set at £12,570.
Someone working 16 hours a week on minimum wage (£12.71×16hours×52weeks) will skirt the earnings limit earning £10,574.72, and combined with carers allowance will overshot the tax threshold, meaning part of their earnings will be subject to tax;
( £10,574.72 + £4,495.40 ) - £12,570 = £2,500.12 taxable. ( Earnings + CA) - Tax threshold = taxable.
This means tax could now be owed on £2,500.12 = £500.02 tax owed.
My question is, if you claim and work 16 hours, assuming you dont put money in a pension, are you aware of this? And if you are, or aren't - what is your tax code?
Because CA is a taxable benefit, HMRC can 'code out' your CA through your tax code. I.e. that tax code of 1257 (£12,570 tax free allowance) can be reduced to 757 (£7,570) meaning that your earnings are taxed sooner.
I'd like to know your tax code, to see how many people have it coded out, but it's also a leading question, as I'd also like you to check.
If its not coded out, and you work 16hours a week, you could be faced with a nasty £500 tax bill next year- so best to check now!
As you are a low earner, and when HMRC discover your code is wrong, they won't code it out during a future year, they'll come for it by way of an unexpected bill to be paid in January the year after with less than 12 months for you to save and pay this back.
My advice would be; make sure your employer knows you get carers allowance, and make sure that your tax code is adjusted down to account for carers allowance now!