ESA and Working Tax Credits

JonnycJonny

Can anyone explain the impact of ESA ( Old style ) on working tax credits - I get the severe disability premium ? Thank you

calcotti

Income based ESA is ignored as income for Tax Credits. If any of your ESA is contribution based that part is taxable income which therefore counts as income for Tax Credits.

JonnycJonny

ESA would be contribution based - how long could I continue to receive WTC ?

calcotti

If you are receiving (old style) contribution based ESA this must have been for a number of years and you are therefore clearly not working enough to meet the qualifying conditions for WTC on your own. Presumably therefore you have a partner and have a joint WTC award. As long as you jointly continue to meet the conditions for WTC you can continue to receive it but, as advised earlier, you need to include the contribution based ESA income in your calculation of your income for the year.
Eventually you will be told that your WTC will end and you will be invited to claim UC.

However, at least some of your ESA is income based because the SDP is an income based premium. An old ESA award can be a mix of contribution based and income based.

JonnycJonny

Yes I have a joint award. 

Thank you for the useful info.

Best wishes

calcotti

JonnycJonny said:

Yes I have a joint award. 

Thank you for the useful info.

Best wishes

So have a look at your ESA award to see if it is partly contributions based or not. If the letters you receive are not clear (and they are notoriously badly written) you can always ring them for clarification (if you can get through).
If it is partly contribution based I think you should get P60 from DWP each year confirming the taxable amount received (but I'm not sure about that)..