Does being in WRAG count towards the 12 month limit for contribution-based benefit?

steve69i

A quick question that has been bugging me.I am presently been in contribution based ESA support for 2 years.If for some reason I was placed in Wrag group would I still be entitled to contribution based benefit or have I already used my 12 months up whilst being in the Wrag group.thankyou

calcotti

Time in the Support Group does not count towards the 365 day time limit (nor does time in the initial assessment period if the first WCA decision was to place you in the Support Group).

See https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/661843/admv2.pdf
paragrah V2020

steve69i

That's great thankyou.
Also is it classed as taxable income for tax credit purposes.Does it just apply for the first year.
Many thanks

calcotti

New style or contribution based ESA is always taxable income and is therefore included as  income taken into account for Tax Credits.
Working out your income for tax credit claims and renewals - GOV.UK (www.gov.uk)

Your income includes:

• wages as an employee, including any ‘employer benefits’ you might have had

• profit from self-employment

• other income, like interest on savings or pensions

• money from state benefits unless they’re ‘tax free’ benefits

Income Tax: Tax-free and taxable state benefits - GOV.UK (www.gov.uk)

The most common benefits that you pay Income Tax on are:

• ...

• contribution-based Employment and Support Allowance (ESA)

• ...

steve69i

Thankyou.Just confusing as I had to inform HMRC about it.The DWP has still not sent them income details for the year 19/20.Last thing I want is an overpayment issue.
Thanks again

calcotti

You have to inform HMRC of your income as part of the Tax Credits renewal process. You should not rely on DWP to do this. DWP should issue you with a P60 which gives you the information you need in order to inform HMRC.