Severe Disability Allowance and Tax Credit

Anubis_2

Can anyone confirm that SDA - Severe Disability Allowance - (NOT DLA) is not counted as Income for Tax Credit purposes as it is not taxable?

Therefore the SDA can be kept on top of wages+WTC ?

Additionally as I am exempt from the PCA for SDA and on HRC that the permitted work rule has no time limitation?

I have also read that SDA will be converted to CB ESA - can anyone confirm?

Thanks.

xylophone

http://www.hmrc.gov.uk/taxcredits/payments-entitlement/other-benefits/affect-taxcredits/disability-benefits.htm#3
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/Disabledpeople/DG_10018894

Anubis_2

Thank Xylophone, seen those on income, but wanted "confirmation" - as sometime website info can be incorrect.

If anyone else can confirm any of the questions I would appreciate it.

[Deleted User]

Be aware though that it *is* counted as income for Housing & Council tax benefit - I found this out, it wasn't worth me trying to work!

Peanuckle

SDA is definitely not counted for tax credits as it's not taxable

Icequeen99

But contributory ESA is counted as income and is taxable, so when you are moved across from SDA, same as those on Long term IB, it will impact on your tax and tax credits.

There is no transitional protection.

IQ

Anubis_2

Icequeen99 wrote: »

But contributory ESA is counted as income and is taxable, so when you are moved across from SDA, same as those on Long term IB, it will impact on your tax and tax credits.

There is no transitional protection.

IQ

Thank you all

I thought that was the case IQ so thanks for confirming

If the partner worked I am presuming that CB ESA would still be counted for tax credit purposes? Therefore it would make no difference?