More help required please

Ruby_woo

I have been helping my friend do her ctc award.

After looking through her esa paperwork, I can't quite make out if they are on income or contribution based esa.

It seems to mention both in the award letter?

How do I differentiate between the two?

Plus if she isn't on income related then do we have to put the esa yearly payments into the ctc form?

Plus, if she isn't on income related then I'm sure that they should not have gotten free prescriptions? That is a worry?

Please help, as I'm struggling to help them and don't want to give incorrect advice.

Thank you

pmlindyloo

What are your friend's circumstances? Single parent? Partner?

It is quite possible to get contribution based ESA with an income based top up if you have a partner who isn't working.

Contribution based ESA is paid if the claimant has worked for a couple of years previous to claiming. It is based on NI contributions. An income based top up is given if there is a partner.

Ruby_woo

Thank you.

They are a couple, he is the main claimant for esa and worked for many years before claiming it. His wife is on the claim. He gets high rate dla care and mob. Does this help at all?

I still can't make head nor tail of it all.

What about the prescription problem. Any ideas.

Thank you.

Ruby_woo

I think you have hit the nail on the head with your first post. I think it's the income related top up. So which would they actually be on for prescriptions etc and for ctc purposes?

rogerblack

Ruby_woo wrote: »

I think you have hit the nail on the head with your first post. I think it's the income related top up. So which would they actually be on for prescriptions etc and for ctc purposes?

If there is any income-related topup, that passports you to all of the income-related bits.
The contribution based bit is not relevant in this case.

Ruby_woo

Thank you so much.

So they get free prescriptions?

Do I need to put the money that they receive on the child tax credit forms?

I love the fact someone on here always has the answers

pmlindyloo

Contribution based ESa comes from a different 'pot of money'. If he wasn't entitled to the contribution based ESA then they would still be entitled to the couple rate of income based ESA.

So, they are entitled to the free prescriptions.

Now the tax credits part. I believe the fact that they are on income based ESA means they are entitled to the maximum Child Tax Credits.

However, the part I am unsure of is whether the contribution part of the ESA has to be declared on the form. However, don't you have to photocopy the award letter and send it with the form? You can always add a letter. (Do keep a copy of any paperwork/form and PO receipt)

If IceQueen or BlondBubbles don't come along with an answer or someone with personal experience can't give a definite answer then your friends ought to phone tax credits.

Ruby_woo

Perfect thank you.

I will write a covering letter and explain.

MR A is on a lot of medication so prescriptions were a worry for a minute or two:) anyway, all sorted and thanks a million.

Ruby_woo

Off to enjoy the sunshine now.

Icequeen99

pmlindyloo wrote: »

Contribution based ESa comes from a different 'pot of money'. If he wasn't entitled to the contribution based ESA then they would still be entitled to the couple rate of income based ESA.

So, they are entitled to the free prescriptions.

Now the tax credits part. I believe the fact that they are on income based ESA means they are entitled to the maximum Child Tax Credits.

However, the part I am unsure of is whether the contribution part of the ESA has to be declared on the form. However, don't you have to photocopy the award letter and send it with the form? You can always add a letter. (Do keep a copy of any paperwork/form and PO receipt)

If IceQueen or BlondBubbles don't come along with an answer or someone with personal experience can't give a definite answer then your friends ought to phone tax credits.

Yes, CBESA still needs to be declared as taxable income, as does any other income that counts for tax credits. But on the form they will tick that they are in receipt of IBESA as well which mean as you say they get maximum CTC and the CBESA income will essentially be ignored. But it still all needs to be declared.

IQ