tax credit confusion regarding industrial injuries benefit

born2bamug

My TC have always been awarded with the disability element after a work accident, and I was awarded industrial injuries benefit. When I first claimed the tax credits(many years ago) it was HMRC who said that I was entitled to the disability element, and each year on renewal (over the phone) I have been told that I still qualify.
However, after reading through the renewal and checking the qualifiying benefits to receive the disability element it now seems that I am not entitled has I do not have the mobility or constant attendance element of the Industrial injuries. I am 40% disabled and could not carry on with my previous employment before accident.
Can someone please clarify whether I should still claim this side of TC.

Thanks

Icequeen99

Did you claim any other disability benefits before you claimed tax credits or other benefits with a disability premium (such as housing benefit with disability premium)? Even if just for a short time?

How many hours do you work?

The criteria for the disability element is complicated, but are right that IIDB is not a qualification in its own right unless you get constant attendance allowance with it.

IQ

born2bamug

Thank you for your repy.

I was claiming Incapacity benefit at the time, so I was getting HB and CT benefits aswell, I have no idea if the HB and CT included the disability element, as I had my accident back in 2002 and was off work almost 3 years due to the injuries. It was DWP who encouraged me to claim the Industrial Injuries, as I had never heard about it (I was lucky enough to have a lady who was very helpful at the local DWP office back then). When claiming the HB and CT I just filled in the forms stating I was getting the IIDB and the proof and went by there calculations of what I was entitled to.

When I was able to get another job I was told that I would not be able to do the heavy manal work as I had previously done and would have to look for a job that I could manage without too much difficulty. As soon as I found employment I was talked through my claim for WTC and CTC so they were aware of what IIDB I was receiving, and they awarded me the disability element. Then each year at renewal they have just asked if I am still receiving the IIDB they have never mentioned receiving the other elements involved.

I work 38 hours a week, my wife claims long term IB and we have one teenager.

Icequeen99

How long before your tax credits claim started did your Incapacity Benefit finish?

IQ

born2bamug

The IB stopped when I returned to work and applied for WTC and TC.The industrial injuries benefit is still being paid as that was a lifetime award.

Icequeen99

In that case you should be ok.

As I said above, industrial injuries is not a qualifying benefit for the disability element unless paid with constant attendance allowance.

However, when you first claimed, you will have qualified for the disability element of tax credits because you received IB (presuming it was at the short term higher or long term rate) for at least 1 day in the previous 183 days.

Your ongoing entitlement to the disability element is obtained through the disability element itself. If you look at the list of qualifying benefits you will see that receipt of the disability element of WTC in the last 56 days means you continue to meet the test as long as you originally qualified via incapacity benefit.

The only sticking point is that for the disability element, as well as getting a qualifying benefit, you also have to be at a disadvantage in getting a job (see http://www.hmrc.gov.uk/taxcredits/tc956.pdf) for the list of things that would qualify for that part of the test). If you pass that part of the test as well you should be ok.

The only problem would be if your incapacity benefit was not at teh short term higher or long term rates (in which case you still might qualify but it would need more investigation).

IQ

born2bamug

I have called TC and gone through my claim and they have confirmed that I am still entitled for the disability, so my renewal for this year is done, just waiting for them to sort it now.

Thank you for your help.

Icequeen99

born2bamug wrote: »

I have called TC and gone through my claim and they have confirmed that I am still entitled for the disability, so my renewal for this year is done, just waiting for them to sort it now.

Thank you for your help.

Presumably though the helpline in the past have mistakenly thought that IIDB is a qualifying benefit?

As I said, i think you probably qualify anyway from your IB.

IQ