ESA Support Group- Tax credits

Orangeblossom wrote: Hi, thank you for your guides, I used them for my PIP claim which I had a medical for at home last week. Today I got a letter saying I'd been transferred to the contributions base ESA support group from contributions based incapacity benefit. I have a query about tax credits. It said on the letter it may count as income for tax credits in certain situations, which I was not in. As far as I'm aware the tax credits people have always looked on the IB as income in their calculations. Could anyone clarify this for me please

Tax Credits are based, in part, on a households taxable income, IB was a taxable benefit for most, but not all claimants, in a similar vein Contribution Based ESA is also liable to tax and therefore would be included in the calculation (n.b. there are no exceptions as there were for IB), however, Income Based ESA is not liable to tax and therefore is not included in Tax Credits calculations although TCs are actually counted as income in regard to ESA(IR).

There is also a Disability element to TCs

I hope this explains it.

Gordon