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Help!! I'm self-employed, but don't pay NI. Am I entitled to ESA? How much could I get?

Hello.
I have been self employed for the past few years, not earning enough to pay NI etc. It was from home and mainly keeping my brain busy a little.
Anyways, I receive enhanced PIP on both indefinitely, but as my health has become worse, I just can’t carry on with this business.
I’ve been told about ESA. Would I be entitled to this? My hubby works from home 3 days a week to cover bills etc and a little over for emergencies etc.
How much would I be entitled too? I’m in a powerchair, tube fed, very ill, constant pain.....you get the drift.
We currently get a little disabled working tax credit, so I assume this will finish if I close my business down?........somebody told me I could get ESA, then have my name on hubby’s business like a named partner, then we might still get some working credit, but didn’t sound right to me.
Any and all advice appreciated. I think I might have to pay for NI stamps even though I’ve not earnt enough?
it’s all so confusing!!
Thanks for listening. X
it’s all so confusing!!
Thanks for listening. X
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Replies
You may be eligible for new style ESA but that all depends on your earnings in previous tax years and with what you say I doubt you would have earned enough
You could apply for UC but yes tax credits will end as it us all under the new UC now
You would have to claim as a couple and your husband earnings will be taken into account but this doesn't mean you wont get anything
Also if applying for UC declare your medical condition and provide sick note this will prompt a work capability assessment
I would use s benefit calculator so you can see what you may be entitled to based on your circumstances
There I'd one on here in benefits section
Hope this helps any further questions just ask
If New Style ESA isn't an option for you, Universal Credit may be. However it would be a joint claim with your partner so it would depend on things such as your household income and any savings/capital. Have a look at the benefits calculator Woodbine shared and let us know how you get on.
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Paying Class 3 NI contributions will not help entitlement to contribution based benefits, they only help towards a State Pension. If you do not expect to live that long there is no point in paying them (apologies if that is blunt but you referred to being terminally ill).
income based ESA cannot be claimed, it has been replaced by UC.
A self employed person cannot pay Class 1 contributions, they are paid by employed persons.
To claim new style ESA you need to have complete NI record for the tax years 2018-19 and 2019-20. If you were registered as self employed on these years you can choose to pay voluntary Class 2 contributions for those two years. The cost will be a bit over £300. You would need to ring HMRC to discuss this and arrange payment. Because the payments are late you would normally have to wait 6 weeks before being able to claim benefits but if you explain to them why you are doing this they may adjust the record so that they do not show as late. You could then claim new style ESA. You will need a GP Fit Note (or form DS1500 from your medical team (if your life expectancy is short).
Having said all that any ESA you are awarded is deducted in full from any UC you could claim so you really need to do a benefits check to see if, as a couple, you have UC entitlement which would be worth more than the ESA. If there is then there is no point in claiming ESA.
As an aside, for a self employed person wishing to full gaps in their NI record for State Pension purposes it is better, and cheaper, to pay Voluntary Class 2 contributions rather than Class 3 contributions. Class 2 are currently £3.05/week whereas Class 3 are £15.30/week.
If you earn between £120 and £183 a week, your contributions are treated as having been paid to protect your National Insurance record. Worth checking