NI contributions/credits for ESA

Spoonie_Turtle

Just to put my mind at ease, once and for all, can anyone tell me whether NI credits from earnings above the LEL threshold - but without NI actually being paid, due to being under that threshold - count towards a claim of ESA when no NI has actually been paid in either of the two tax years?

I am on UC but I just have this nagging 'what if?' that I can't quite pin down. If I can claim ESA with my NI record from previous earnings, the time frame to do so is running out. I just want to know if it's possible and go from there.

calcotti

Yes they do (I’m not sure if technically they are NI credits). If you earn over the LEL but below the primary threshold you are treated as if you have paid NI contributions even though you don’t. This therefore counts towards the requirement to have paid, or have been treated as having paid, NI contributions for 26 weeks in at least one of the two relevant tax years (as well as towards the requirement to have 2 full years).

You have nothing to lose by applying. As you know the ESA will be deducted from the UC but if you are in the Support Group such that the ESA can continue beyond 12 months it would protect your income should your circumstances change in the future such that your UC entitlement ended or reduced.

Alice_Holt

Yes (again) -  https://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based.

Plus it is another income source if a problem arises with UC (in addition to calcotti's final para point)

calcotti

I think the entitledto page referenced by Alice could be phrased better. I think it should say:

First contribution condition - in one of the last two complete tax years, you must have paid, or be treated as having paid, Class 1 or 2 contributions on relevant earnings at the lower earnings limit for at least 26 weeks. This means you must have worked for at least 26 weeks of the last two complete tax years; 

The bit in bold italics is my insertion.

Spoonie_Turtle

Thank you. I assume having been awarded LCWRA I don't need a fit note for the application?

Also which tax years are they looking at currently please? I will need double check how many weeks I earned over that threshold because after September 2018 I only managed 2 full weeks, with another partial week and the rest on sick pay (not sure the source of the partial weeks' sick pay, whether it wasn't SSP and still counts or not).

calcotti

The relevant tax years are 2017-18 and 2018-19. These years apply for ESA claims made prior to 3rd January 2021.

If you had weeks in which you only received SSP you will not have been treated as having paid NI nor will you have received NI credits for those weeks. However you can apply for Class 1 credits for time on SSP. Write to: PT Operations North East England, HM Revenue and Customs, BX9 1AN. Include your National Insurance number and say when the credits are for and why you’re eligible. 

If the SSP period is for the 2018-19 tax year I believe you need to apply for NI credits, if you wish to, before the end of 2020. In any case if you need the. You need to apply ASAP so that you can get the credits in time to make the ESA application.

Spoonie_Turtle

Great, thanks. I'm certain all my years are full (credits) but I'll double-check. 17-18 I'll definitely have been fine for credits from earnings.

Spoonie_Turtle

(Uh, as an aside, how does one end up with 60 or 70+ weeks' of NI credits in a single year?!)

Spoonie_Turtle

Done - thank you for the help re: NI credits and also in particular for pointing out it should protect me against any future changes of circumstances. I think that possibility was the nagging 'what if?'

p00hsticks

Spoonie_Turtle said:

(Uh, as an aside, how does one end up with 60 or 70+ weeks' of NI credits in a single year?!)

I think if someone is both paying NI and getting credits they can end up both being counted - for example, someone both paying NI monthly through their employment but also claiming Child Benefit which comes with automatic weekly credits. But it will always only count as a single year for things such as state pension qualification.

calcotti

You can check NI record by contacting HMRC https://www.gov.uk/check-national-insurance-record