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TOPIC: Income related ESA (legacy) and working tax credit

Income related ESA (legacy) and working tax credit 4 weeks 8 hours ago #243129

Any help appreciated.

I am in the process of claiming legacy income related ESA (get SDP in legacy HB and also receive enhanced PIP). I am self-employed and have only ceased trading because of illness. I am not closing my business. I am still under contract for a piece of work which I intend to resume working on when I am well again.

I know this forum does not deal with tax credits questions but may know the answer as it is related to applying for a disability benefit. I thought I understood the answer to this but I am now confused.

When making a new claim for a benefit, the HMRC tax credits site advises informing them within 1 month of doing so. That deadline is 2 weeks away and I have yet to hear if my ESA claim will be processed (put into assessment phase payment) and so I haven't informed HMRC yet.

I know that as self-employed, my working tax credits claim remains open up to 28 weeks whilst off sick on ESA. However, how are my working tax credits payments affected by getting ESA? Are they paid at the same time? Does one cancel the other one out? Which one is taken into account as income and cancelled out?

I read somewhere and thought I understood there was a 4 week run on of payment of working tax credits once ESA is claimed - but I now think that only applies if you stop self-employment altogether and close your working tax credits claim. Or have I got that wrong? I cannot find an answer to this question anywhere.

When claiming ESA, I have informed the DWP I am in receipt of working tax credits and also that my self-employment remains open and that I have only stopped work due to illness and that no-one has taken over the business for me - not that kind of business - and that I intend to resume trading once I am well again.

Any help appreciated or idea of where I can find the right answer. Thank you.

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Income related ESA (legacy) and working tax credit 4 weeks 8 hours ago #243133

libra

As you acknowledge the forum does not deal with Tax Credits so he only advice I can give you is for you to get face to face advice from a local agency such as the CAB.

Gordon
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Income related ESA (legacy) and working tax credit 3 weeks 4 days ago #243270

Hello Gordon,

I phoned DWP ESA enquiry line today to check on the progress of my legacy ESA IR claim to know if they have received the further evidence asked for in the tracked post. They have and my ESA claim is now live and active and a first payment will be credited in my account next week.

When I was told the amount to be paid to me, it was low - even though as part of the applicable amount what is included is the assessment phase ESA for a claimant over 25, enhanced disability premium (because I received enhanced rate PIP for daily living) and the severe disability premium. It was explained to me that because I receive working tax credits (entitled to keep receiving them for first 28 weeks of sickness before claim closes with a 4 week run on thereafter), that amount (which includes disability elements) is considered as income and so it is deducted from my ESA IR amount.

Just thought you would like to know. If in receipt of ESA IR (legacy), working tax credit income is counted as income and so is 100% deducted from ESA payments per week. Also, if on ESA IR, the maximum amount of working tax credits is payable for your situation per week, regardless.

It works out that during the assessment phase of my ESA claim, I am about £30 per week better off because of the premiums.

Next stage is awaiting and completing the ESA50 form..

Libra
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Income related ESA (legacy) and working tax credit 3 weeks 4 days ago #243282

Hi libra1

Thank you for the up date, there will be other members on this forum who are going through the same situation as yourself, so your information will be useful for them.

Gary
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Nothing on this board constitutes legal advice - always consult a professional about specific problems
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