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Confusing National Insurance contributions advice
- beelady44
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9 hours 5 minutes ago #312784 by beelady44
Confusing National Insurance contributions advice was created by beelady44
Hi, I am hoping someone may be able to help with the conflicting information I am receiving from New Style ESA advisors.
I was claiming income related ESA for 15 years. In june 2024, I decided to try a small online reselling business for the sake of my mental health after being long term on benefits. I telephoned ESA and explained the situation that whilst my disabilities were unchanged, I would like to try to stand on my own if possible. My claim was ended and I began my business. I tried this for almost a year but have found that sourcing stock and the physical side of running a business too problematic. I have also been newly diagnosed with an auto immune condition that has greatly reduced my mobility.
I telephoned ESA and they advised me to apply for New Style ESA. This I did and was informed a few weeks later that I didn't qualify due to NI contributons. When I telephoned to ask why, the lady told me they had got it wrong and I would be sent a Capacity to Work Questionnaire. A week after recieving the questionairre I was sent another letter to say I wasn't eligible. They seem as confused as I am.
For the tax years 22-23 and 23-24 I have full years NI credits and for the tax year 24-25 I have 10 weeks NI credits and 42 weeks class 2 contributions.
I have read the rules for NI contributions on this site but have to admit I still remain a little confused as do the advisors I speak to. Some are saying Yes, I am entitled to claim for New Style ESA and others are saying not.
Any Help anyone may be able to provide would be very gratefully received.
I was claiming income related ESA for 15 years. In june 2024, I decided to try a small online reselling business for the sake of my mental health after being long term on benefits. I telephoned ESA and explained the situation that whilst my disabilities were unchanged, I would like to try to stand on my own if possible. My claim was ended and I began my business. I tried this for almost a year but have found that sourcing stock and the physical side of running a business too problematic. I have also been newly diagnosed with an auto immune condition that has greatly reduced my mobility.
I telephoned ESA and they advised me to apply for New Style ESA. This I did and was informed a few weeks later that I didn't qualify due to NI contributons. When I telephoned to ask why, the lady told me they had got it wrong and I would be sent a Capacity to Work Questionnaire. A week after recieving the questionairre I was sent another letter to say I wasn't eligible. They seem as confused as I am.
For the tax years 22-23 and 23-24 I have full years NI credits and for the tax year 24-25 I have 10 weeks NI credits and 42 weeks class 2 contributions.
I have read the rules for NI contributions on this site but have to admit I still remain a little confused as do the advisors I speak to. Some are saying Yes, I am entitled to claim for New Style ESA and others are saying not.
Any Help anyone may be able to provide would be very gratefully received.
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- David
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8 hours 2 minutes ago #312788 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic Confusing National Insurance contributions advice
Hi beelady44
Here are the rules regarding the contributions for NS ESA :-
" First contribution condition - in one of the last two complete tax years, you must have paid Class 1 or 2 contributions on relevant earnings at the lower earnings limit for at least 26 weeks. This means you must have worked for at least 26 weeks of the last two complete tax years; and
Second contribution condition - in both of the last two complete tax years, you must have paid or been credited with, Class 1 or 2 contributions on earnings of at least 50 times the lower earnings limit.
The 2 tax years that are relevant are the ones that were completed before the benefit year in which your period of limited capability for work began."
So as 42+8=50 you should meet the Conts condition for tax year 25- 25. You will need to get proof of your NI record which can be obtained here,
www.gov.uk/check-national-insurance-record
Let me know how you get on.
David
Here are the rules regarding the contributions for NS ESA :-
" First contribution condition - in one of the last two complete tax years, you must have paid Class 1 or 2 contributions on relevant earnings at the lower earnings limit for at least 26 weeks. This means you must have worked for at least 26 weeks of the last two complete tax years; and
Second contribution condition - in both of the last two complete tax years, you must have paid or been credited with, Class 1 or 2 contributions on earnings of at least 50 times the lower earnings limit.
The 2 tax years that are relevant are the ones that were completed before the benefit year in which your period of limited capability for work began."
So as 42+8=50 you should meet the Conts condition for tax year 25- 25. You will need to get proof of your NI record which can be obtained here,
www.gov.uk/check-national-insurance-record
Let me know how you get on.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- beelady44
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4 hours 43 minutes ago #312796 by beelady44
Replied by beelady44 on topic Confusing National Insurance contributions advice
Hi David, Thank you so much for that. I have telephoned them again this afternoon and they have opened a "Mandatory Reconsideration" so will look again at my claim. I shall keep you updated. Many thanks.
Best wishes,
beelady44.
Best wishes,
beelady44.
The following user(s) said Thank You: David
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