Tax Allowances
Everyone has a 'personal allowance' that allows them some tax-free income each year. If you are over 65 you may be entitled to an increased personal allowance, depending on your income. The effect of this would be that less of your money would be taken in tax.
The Directgov website has more information about allowances that can reduce your tax in retirement.
Benefits You May Be Entitled To
Some, but not all, benefits are means tested. Some benefits are paid in relation to health needs rather than financial needs.
Attendance Allowance and Disability Living Allowance
Attendance Allowance and Disability Living Allowance are non-means-tested and tax free benefits, relating to disability (e.g. dementia).
Attendance Allowance is for those who claim when they are aged 65 or over. Disability Living Allowance is for those who claim when they are aged under 65 (but can then continue to be paid whatever the individual's age).
Attendance Allowance and Disability Living Allowance are both paid at different levels, depending on the person's level of mobility, and care needs. A medical is not normally required, but having help to fill in the claim form may be beneficial.
For more information choose from the following links:
- Disability Living Allowance - general information
- Disability Living Allowance - rates and how to claim
- Attendance Allowance - including current rates
- Alzheimer's Society Welfare benefits factsheet
- Age Concern Attendance Allowance and Disability Living Allowance
- Benefits Now: this website provides comprehensive information about Disability Living Allowance and Attendance Allowance. It enables you to assess yourself for these benefits before you apply, and has details of the appeals process if your claim is unsuccessful.
Carer's Allowance
Carer's allowance is paid to informal carers who provide 35 or more hours of care a week. It is both means tested and taxable. It may also affect the amount of benefits you or the person you care for receive, so do seek advice before claiming.
For further information see:
- Alzheimer's Society factsheet Welfare benefits
- Age Concern Carer's Allowance Information Sheet
- Directgov guide to Carer's Allowance
Benefits for People with Dementia of Working Age
If you are under 65 some of the benefits you are entitled to will differ from those of older people. For more information see our Benefits Available for Younger People section.
Further Information
Tax and Benefits entitlement is a complex area. You may want to visit the following websites for further information:
- CAB Adviceguide (general benefits advice)
- CAB Adviceguide (general tax advice)
- HM Revenue & Customs website
- Directgov Money, tax and benefits
- The Department for Work and Pensions (DWP)
Alternatively you may wish to seek financial advice.
