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Hi, my name is Zitta and I have a question about benefit entitlement.

Zitta

My divorce settlement is due and will take me over the £16,000 savings limit. I am on income related ESA support group including Severe Disability payment and PIP.
Is there any help I can receive. I realise I cannot receive means tested benefits. Is working tax credit a possibility or contribution based ESA?

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poppy123456

HI and welcome,

You will need to report the changes once the money goes into your bank. If all of your ESA is income related then yes this will end.

If you receive housing benefit and council tax reduction then you will also need to report the changes to your local council because both of those will also stop.

You won't be able to claim Contributions based ESA or New style ESA because those are based on your NI contributions from working in the previous 2 tax years. Working tax credits can only be claimed if you're working.

PIP isn't means tested and won't be affected.

Zitta

Poppy123456
thank you for reply. If I become self employed & work from home for 16 + hours a week. Also I do get SDP & I read somewhere this can help a person migrate within a month.

Obviously the “ lump sum” will not last long unless I am working as well.

poppy123456

Self employed people do claim tax credits but your self-employed work must aim to make a profit. It must also be commercial, regular and organised.

This means you may not qualify if you do not:

make a profit or have clear plans to make one
work regularly
keep business records, such as receipts and invoices
follow any regulations that apply to your work, for example having the right licence or insurance

If the average hourly profit from your self-employed work is less than the National Minimum Wage, HM Revenue and Customs may ask you to provide:

business records
your business plan - find out how to write a business plan
details of the day-to-day running of your business
evidence that you’ve promoted your business - such as advertisements or flyers

https://www.gov.uk/working-tax-credit

Zitta

Okay thank you, I will investigate further

Cher_Alumni

Morning @Zitta and welcome to our online community.

I've moved your post to our What benefits am I entitled to? board so its in a better spot to get good attention. I see @poppy123456 has already given you detailed advice but please let us know if we can help you in any other way.

Zitta

Thank you

poppy123456

Once the money drops below £16,000 and you need to claim for help with any rent then you will need to claim for Universal Credit. If you claim UC and you're claiming working tax credits then this will then end.

Savings of £6,000 and over will reduce your UC by £4.35 per month for every £250 (or part there of) over that amount.

Zitta

Okay. I will take that into consideration.

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