Worst case scenario

Becles

I'm a single mother of three working on a self employed basis. I'm claiming child benefit and child tax credits. My home is mortgaged.

I'm not very well at the moment and have been referred to the hospital for tests. I'm managing to struggle by with work at the moment as I don't get sick pay, so no work = no income!

I'm worrying about the worse case scenario. If my health gets worse, or the tests at the hospital find something bad and I'm forced to go sick from work, what happens? Would I be entitled to claim anything to help until I'm well enough to go back to work? I do pay Class 2 and Class 4 NI.

Hopefully it won't come to this but it would put my mind at rest if I have a contingency plan.

nannytone_2

you would claim ESA if you were unable to work because of illness

Indie_Kid

If you have care and /or mobility needs, you can claim PIP. But it's taking a while for an assessment.

If your youngest is under 5, you can claim income support instead of ESA.

Becles

Yes I work full time, but I'm not entitled to working tax credits. I don't have child care costs as I work from home around the children and relatives help out for free.

Icequeen99

Becles wrote: »

Yes I work full time, but I'm not entitled to working tax credits. I don't have child care costs as I work from home around the children and relatives help out for free.

When you say you are not entitled to Working Tax Credit - you need to check this carefully.

There is a difference between not being entitled and not receiving it because your income is too high.

Childcare is not the only part of WTC, you would qualify because you are working full time.

If it is included in your calculation, even if you don't receive any payments, you will need to check your reporting obligations to HMRC for that side of things. You can keep getting WTC for 28 weeks if you would have qualified for SSP or ESA if you had been employed.

IQ

Becles

I meant I'm not receiving working tax due credits to income.

I didn't realise I would still count as working even though I'm sick, so I may get more from tax credits. They don't make it easy to follow do they?!

Robbie64

Becles wrote: »

I meant I'm not receiving working tax due credits to income.

I didn't realise I would still count as working even though I'm sick, so I may get more from tax credits. They don't make it easy to follow do they?!

In order to be counted as still in work and therefore to continue to get / to claim Working Tax Credit while off sick (for the first 28 weeks) you have to be getting either:

• Statutory Sick Pay (SSP)
• short-term Incapacity Benefit at the lower rate
• Employment and Support Allowance
• Income Support paid on the grounds of incapacity for work
• National Insurance credits on the grounds of incapacity for work or limited capability for work

If you do not get any of the above then you will not be classed as still working and will not be able to claim Working Tax Credit.

Robbie64

blondebubbles wrote: »

A self-employed person does not have to receive one of the benefits listed above. They will be treated as engaged in qualifying remunerative work for up to 28 weeks providing that:
they were engaged in self employed qualifying remunerative work in the week immediately before the period of sickness began
they would have qualified for one of the benefits listed above if they had been employed

http://www.hmrc.gov.uk/manuals/tctmanual/TCTM02421.htm

Thanks for the clarification. The WTC2 (A Guide To Child Tax Credit and Working Tax Credit) booklet isn't clear on how WTC for the self-employed is affected during the first 28 weeks of sickness.