ESA & Tax Credits help!

niaud

Hi guys, I hope someone can help me.

I have recently become self employed and expect to earn approximately £200 per week. I currently receive approx £100 per week in Working Tax Credit and Child Tax Credit.

My husband has just finished his 28 weeks of sick leave and is now unemployed. He is considering applying for ESA.

My question is this: If my husband applies for ESA, this will obviously change our Tax Credits, but does anyone know by how much?

We are thinking that we might be better off as we are now, than if he was to receive ESA, particularly at the lower limit.

Can anyone shed any light on this? I had phoned the Tax Credits Helpline, but the person I was speaking to couldn't tell me what would happen until it actually does.

MrsManda

Has your husband been dismissed on capability grounds from his job, resigned or do you just mean that he is no longer being paid SSP due to having received his 28 weeks?

I don't know how much your tax credits will be affected but you can model your circumstances on the tax credit calculator http://www.direct.gov.uk/en/MoneyTaxAndBenefits/TaxCredits/Paymentsandentitlement/entitlement/DG_181270

Remember that claiming ESA will also mean that he will receive National Insurance credits which will count towards his state pension. - need at least 30 years of NI credits.

PrincessDonna2009

If your husband claim's for ESA and they award him Contributions based ESA, in which they will because he's been working...then your tax credit's will be effected and probably go down, if not this year, but next year, because Contributions based ESA is a taxable benefit.

I do hope you can get something, as I know what it's like when you have to leave a job and go on to sick benefit.

Good Luck

niaud

Hi,

My husband has received his 28 weeks, so is no longer receiving SSP.

Thank you for the link to the calculator, I will have a look at it.

Thanks also for the info on National Insurance - I was thinking about that too!