ESA. Please Help

simpson_77

Hi,

So, my wife has been self employed for 20 years, never made any benefits claims with the exception of Maternity Allowance. Self assessment every year and up to date (or so we thought!).

At the beginning of December she damaged her back (3 days in hospital) and has been signed off work since by the doctor. She made a claim for ESA in February with a start date of 2nd December 2018. Had the Job center appointment and all fine.

On the 7th March she received a letter stating they were not going to pay her claim as there were missing NI credits from the tax years ending 16 and 17. She called the NI office and in the year ending 16 there was a shortfall of 3 weeks (this tax year she was on Mat allowance) totaling £8.40.

This was paid and she went back to ESA and asked them to re-consider. The response is baffling, firstly as there wasn't sufficient contributions on the initial claim the period between 2nd December and today would be written off. Secondly she would be fined 6 weeks as there had been a shortfall in NI contributions. Thirdly, there was no complains process and she would need to speak to her MP. Does this sound right?

The £8.40 was essentially a top up for and hadn't been asked for, but more puzzling is the right off of the claim to date and the 6 week fine. so whilst now accepted she wont receive her 1st payment until May.

Really need some help on this or should we accept this is the way it is?

Thanks,

sportsarb

The 6 week penalty for late payment of contributions is correct. The only way around this is to get HMRC to accept them as being paid on time and they have their conditions for this, usually they have to admit liability for not billing etc.

The 6 week period begins on the day the contributions are treated as paid, usually this will be the exact date they were paid.

You can ask your MP to submit a complaint but for things like this where there is an absolute rule, it can only change things if upon review there was an error in the application of the rules, it’s not an area that is open to interpretation/opinion of the member of staff.

The DWP themselves must have a complaint system. Not sure how they accept them though.

Can she account for all 52 weeks of the affected year or is she accepting there was a gap?

calcotti

The six week delay is correct. It's not a fine but when NI payments are paid late there is a rule which only treats them as paid six weeks after the actual date of payment. Your wife doesn't qualify for ESA until after this 6 week period has elapsed.

I think this 6 week delay is an HMRC rule rather than a DWP rule.

sportsarb

calcotti wrote: »

I think this 6 week delay is an HMRC rule rather than a DWP rule.

It’s HMRC’s call on whether they are late paid or not but the 6 weeks penalty is a social security/DWP rule.

simpson_77

sportsarb wrote: »

Can she account for all 52 weeks of the affected year or is she accepting there was a gap?

The £8.40 relates to tax year 15/16 and looking at the return her income for the year was 5,545 which was split £1,952 Incapacity benefit (bad morning sickness) and £3,593 Mat allowance. The calculation shows an £8.40 balancing payment (not sure what this means)

simpson_77

On HMRC online it shows all years of NI are up-to date (with the exception of 97/98!). It showed the same when we did her Tax return for 17/18 a few weeks back...

It the writing off of the past 5 months which has infuriated me. Especially as its for £8.40! and we miss out on circa £1,500

simpson_77

on the NI on line for the year 15/16 this is shown:

You have contributions from

Self-employment: 3 weeks

National Insurance credits: 52 weeks

calcotti

sportsarb wrote: »

It’s HMRC’s call on whether they are late paid or not but the 6 weeks penalty is a social security/DWP rule.

That's sportsarb - I've never previously tracked down the legislation that this delay arises from!

OP - the rule is confirmed in the HMRC manual https://www.gov.uk/hmrc-internal-manuals/national-insurance-manual/nim72260

Class 2 NICs are late for benefit purposes if they are paid outside certain time limits. When they are not paid on time, benefit may not be paid for up to six weeks from the date the Class 2 NICs are paid. This varies for each type of benefit.

Paid late - Regulation 4(3)(b) of the Social Security (Crediting and Treatment of Contributions and National Insurance Numbers) Regulations 2001 (SI 2001 No 769)

Class 2 NICs are marked late (L) for benefit purposes if they are paid

• after 31 January following the end of the tax year in which they were due, and
• not later than 6 tax years from the end of the contribution year in which they were due

Example
Class 2 NICs due in respect of the 2015 to 2016 contribution year

If Class 2 NICs due for the 2015 to 2016 contribution year are paid after 31 January 2017 and on or before 5 April 2023* are marked as late (L).

If Class 2 NICs are marked as late (that is, paid after 31 January after the end of the tax year in which they were due), they are treated for the purposes of working age contributory benefits (i.e. Employment and Support Allowance and Jobseekers Allowance) as having been paid at the expiry of a period of 42 days (including Sundays) commencing with the date on which the payment of the contributions is made.

calcotti

simpson_77 wrote: »

on the NI on line for the year 15/16 this is shown:
You have contributions from
Self-employment: 3 weeks
National Insurance credits: 52 weeks

What do the 16-17 and 17-18 years show?

simpson_77

ok, but is it right that the rest of the claim is written off?

simpson_77

calcotti wrote: »

What did the 16-17 year show?

2016-17 Full year
You have contributions from

Self-employment: 44 weeks

National Insurance credits: 52 weeks