Self Employed Entitled to £73.10 p/w New Style ESA CONTRIBUTION BASED

easylifewashboy

Hi. I am self employed and paid NI for at least 3 years. Due to the effect of the Covit - 19 virus and Government/NHS guidelines i am unable to work. According to benefit calculators i am entitled to CONTRIBUTION BASED NEW STYLE ESA which is £73.10 per week and NON MEANS TESTED. Does anyone know if this will affect the 80% income grant that we will receive in June. Thanks

mwarby

From https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme

You can apply if you’re a self-employed individual or a member of a partnership and you:

• have submitted your Income Tax Self Assessment tax return for the tax year 2018-19
• traded in the tax year 2019-20
• are trading when you apply, or would be except for COVID-19
• intend to continue to trade in the tax year 2020-21
• have lost trading/partnership trading profits due to COVID-19

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there's nothing there about not being on  benefits, and you can claim that you would be trading if not for covid, and presumably you intend to keep trading. Most people talk of universal credit, and that was changed to make it easier for self employed to claim, are you sure this isn't better for you, it's possible some calculators or wizards are not up to date

calcotti

Based on the information so far published claiming benefits will not affect claiming the support.

however new style ESA cannot be claimed because your income has dropped, it is for people who are ill or treated as ill.

you should look at whether you are eligible for UC. When the grant is paid I believe this will be treated as earnings when calculating UC for the assessment periods in which it is received.

latinaid

calcotti said:

When the grant is paid I believe this will be treated as earnings when calculating UC for the assessment periods in which it is received.

Does that mean that someone getting UC from March - May might be asked to pay the UC back once they receive the grant in June (which I believe is technically backdated to cover March - May)?

calcotti

latinaid said:

calcotti said:

When the grant is paid I believe this will be treated as earnings when calculating UC for the assessment periods in which it is received.

Does that mean that someone getting UC from March - May might be asked to pay the UC back once they receive the grant in June (which I believe is technically backdated to cover March - May)?

You raise an interesting question. I believe the answer is no.

UC is based on a monthly calculation and takes account of money actually received during the month. Therefore I think this is what will happen.

if you claimed UC in mid March you would get a first payment in late April based on the period mid March to mid April. You would get a second payment in late May based on the period mid April to mid May. The third payment in late June would cover mid May to mid June. If the grant has been received during that time it will be taken into account for that assessment period only and the UC reduced. I assume that it will be treated as earnings rather than unearned income. The UC payable may be nil as a result. If this happens the claim may be closed but the claimant can reopen it by accessing their UC journal and making a rapid reclaim. The following month will then be calculated in the normal way.

If the grant is large there may be what is known as surplus earnings in which case some of the grant will be taken into account in the following month also so there may be nil entitlement again, in which case the claim may be closed again and the claimant must again do a rapid reclaim. It is vital that the claimant does make a rapid reclaim if their claim is closed

andyjf

Hi 
I am in a partnership and our profits are over the 50k limit to claim a grant . We split profits 50/50 so are we entitled to claim as individuals? Any ideas?? I can't find any clarity on the Gov.uk site.

calcotti

For you to claim the profits are your share of the profits.

Hermann

If you currently receive any Tax Credits double check it will benefit you to change to UC, as some are worse off and you can't go back. 

andyjf

That's good then , 50% of profits brings us well under the 50k limit . Thankyou:)

Shutters1

Good morning, I am 66 and full time self employed I receive a state pension,  I am confused as to whether I can claim universal credit or not. Thank you

Jeremy535897

Try an eligibility checker. It depends on income and savings.
As you are self employed you should look at the grant available:
https://www.gov.uk/guidance/claim-a-grant-through-the-coronavirus-covid-19-self-employment-income-support-scheme
Does your business occupy property on which you pay rates, or would do but for small business rate relief/rural rate relief?