Will ESA affect Tax Credits

lilangel_2

Hi

I wanted to know before I go claiming anything whether anybody will know whether Employment and Support Allowance will affect the Tax Credit we recieve and whether it's actually worth bothering to claim this benefit, because if they are going to give it to me in one hand and take it away in another what would be the point in doing so, if you catch my drift.

Basically my doctor has said I'm unfit for work and I've been told I would be entitled to this benefit but really would like to know whether anybody out there would know if it's worth doing so.

Thanks in advance for any help

Rhiannon x:A

karenx

Is it child tax credits or working tax credits or both that you recieve?

lilangel_2

We get child tax credit and my husband does recieve working tax x

NASA_2

ESA is considered as income for Working Tax Credit but I doubt it would affect your WTC by any significant amount. I assume you would be claiming the Contributory part of ESA? WTC is counted as income for ESA(IR).

craig_dufc

It depends.

if you will get Income related ESA then that would give you maximum entitlement to both wtc and ctc.

however, if it's contributions related ESA, then it could potentially have a big impact on your award.

For example, depending on other income in your household, it could take you over the threshold etc

best thing to do, find out the type and amount you'd get and phone tc for a entitlement calc, that way you'll know where you stand

lilangel_2

thank you for your help guys much appreciated

G51shopaholic

I was advised by the Tax Credit Office that the first 28 weeks of my Contributions Based Employment Support Allowance would not be counted as income so this amount was deducted from my Taxable Benefit total. And I got this checked by the duty superivisor as I'd never heard of this before.

Deducted the last 6 weeks from 2009/2010 total.

Obviously if anyone has a comment to make on this I'd welcome it, but as I said I got this checked out by a Supervisor.

G51shopaholic

oh sorry - you have to delare a benefit that you would have been entitled to had you claimed it - this is called Notional Income on the Tax Credit form and they count it in anyway.

Better to keep yourself straight