Disability Tax Credits and Local Housing Allowance

Nicetea_2

I am disabled and over 50 and thinking about becoming self-employed and hopefully eventually not need benefits anymore but it seems impossible to get through on the telephone for any advice.I am trying to find out which tax credits are treated as Income for LHA ie the disabilty and over 50's elements.I know DLA is disregarded.What a great forum,wish I had seen it earlier.

Benefits_Bod

This is a broad overview - the nuances and complexities don't make it easy to convey. So, cautionary qualification given, here goes...

The starting point is that Tax Credits count as income for HB/CTB. The normal earnings disregard for a single person is £5 per week. However, that rises to £20 if a claimant is deemed disabled under HB/CTB legislation. If you remain entitled to DLA, you will be entitled to the Disability Premium in the calculation of HB/CTB.

Separately, a further disregard of £17.10 is allowed where a claimant works for at least 30 hours per week - the hours requirement reduces to 16 where the claimant receives the Disability Premium for HB/CTB purposes, or, where you are eligible for the 50+ element of Tax Credits. If your earnings are so low that the whole of the £17.10 cannot be disregarded from those earnings, the remaining part of the £17.10 should be disregarded from any award of Working Tax Credit. The "transfer" of disregards does not extend to the £5/£20 disregards referred to above.

Confused? Me too :eek:. Hopefully, this goes at least some way to helping. If further clarification is needed, I'll do my best.