ESA Credit only query

RedQueenie

I currently receive ESA Credits Only.

I have recently been added as a director to my partners Limited Company. It is more to offer me some protection should anything happen to him as we are not married but have been living together for over 15 years. His accountant has said that as a director I could take wage even though I do very little within the company.

Please could someone tell me if I would need to come off ESA Credits Only or if I would be allowed to earn a certain amount before it would be effected? I hope this makes sense.

RedQueenie

Is anyone able to offer me some advise? I know calling the DWP would be the thing to do, but in the past it has always got me in such a tiss. Having some idea as to what to expect first would help immensely.

Kimmy87

I wouldn't trust the DWP to give the best advice, if no one here can help I'd recommend talking to a local welfare rights organisation.

https://advicelocal.uk/welfare-benefits

OverlyAnxious

I don't know and would suggest getting proper advice as well.

Though I believe you can only earn up to a certain threshold and keep the Credits Only claim. If you earn over that threshold, the NI contributions should then come from the wage instead.

RedQueenie

Thank you. I've tried googling but there's nothing specific. I did wonder if it would come under permitted work?

OverlyAnxious

https://forum.scope.org.uk/discussion/comment/972814#Comment_972814

This is the part I'm not sure on. Permitted work is £183 a week. Though the lower limit for paying National Insurance with a part time job is £242 a week. I would assume the threshold for ESA Credits is one of those, but I don't know which.

poppy123456

A credits only ESA claim is not an open claim as such, it's just a credits only claim. For NI contributions the lower earnings Limit (LEL) is £123/week. If you earn at least that much, you will be treated as having paid class 1 NI contributions, although you don't actually pay them. They count towards state pension and benefits entitlement. See link.

https://www.gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions

With permitted work earnings being £183.50/week my advice would be that if your earnings are less than that they your NI credits would continue to be made.

RedQueenie

Thank you all for your advise. I have to admit I'm still a bit unclear as to what to do.

I was thinking calling to ask them to stop it completely, but I have read that doing this can trigger a PIP review. I had one just before Christmas and what with waiting for that decision and dealing with this I don't think I can take anymore stressors.

OverlyAnxious

I can't see any reason for that to trigger a PIP review. However, I also don't think it's necessary to cancel immediately. As you're not actually getting money for it, there wouldn't be anything to pay back even if it does stop in future.

Do you know if your wage would be below the £183.50 limit for permitted work?

poppy123456

As I advised an ESA credits only claim isn't an actual ESA claim as such. If you contact them it would not prompt another review for your PIP.

If your earnings will be less than the permitted work amount then the credits would continue as normal.

RedQueenie

Thank you for the reassurance.

I never have taken a wage as I do very little other than send /pay a couple of invoices a month. I only agreed to becoming a director because the accountant advised it would be a good idea, as should anything happen to my partner I would still be able to keep the business going. We are meant to be getting married but that's another thing that sends me into a spin :-)

He suggested I take a wage below the taxable limit as the money would do better in a savings account. I would happily carry on not taking a wage if it makes things easier.

I'm just terrified of doing something wrong. I know that sounds silly but it has been keeping me awake at night and being tired is never good for the head.

Could you tell me if I do go down the permitted work route will I have to call to let them know or is there a online form I can fill out to notify them?

poppy123456

There’s a form called PW1 form that you will need to fill in and return.