ESA not eligible, not enough tax credits

momuse

I'm trying to claim ESA for my husband after he became ill. They calculated year 2021-22 and I looked up his record and it says it is still calculating that year and whether it is eligible for pension.
I've appealed 2x but nothing they still say he hasn't paid enough. I looked at his tax bill that year and it was around £760 and he earned 16k so I think he paid in full and worked enough. I'm not sure what to do.
I've applied for NI credits for the year he got ill 2022/23 but we haven't heard anything back and that was well over 2 months ago - so that year is also "calculating" 😕

huckster

Have you looked to claim Universal Credit as a couple?

For New Style ESA the current qualifying years are 2021/2022 and 2022/2023. But they look at the year running from January and not the normal tax year starting on April 6th.

Do you know your husbands earnings details for that year every month?  Was he employed and PAYE? Or was he self-employed and paid the class 2 NI contributions?

HillStreetBlues

huckster said:

For New Style ESA the current qualifying years are 2021/2022 and 2022/2023. But they look at the year running from January and not the normal tax year starting on April 6th..

I don't think that is correct
They look at the normal tax year, but it's January when the tax years changes. In Jan 2025 the tax years become 2022/23 & 2023/24

TELLIT01

The rules for qualification may have changed but at one time ESA entitlement was based on the number of weeks when earnings were above a certain threshold, not simply on total earnings for the year.

momuse

He was self employed and I don't know what he earned over certain weeks I don't have those records only his total earnings. I just paid at the end of the year what he owed including NI contributions. We are not eligible for UC due to savings as we are both self employed.

poppy12345

Was it class 2 NI contributions that were paid? If it was class 4 then that doesn't entitle you to NsESA. 

sheramber

Do you have a copy of his 21/22 tax calculation as £760 seems low for profit of £16k?


You can view or print your tax returns through your Personal Tax Account, by selecting 'Self Assessment' within the Self Assessment tile, then clicking on 'More details about your Self Assessment returns and payments'.

Then, select 'View your tax year overview', before selecting the tax year you want to view on the tax year drop down, and clicking 'go'.

https://community.hmrc.gov.uk/customerforums/sa/b313a027-a99e-ee11-a81c-002248004b84

Spoonie_Turtle

TELLIT01 said:

The rules for qualification may have changed but at one time ESA entitlement was based on the number of weeks when earnings were above a certain threshold, not simply on total earnings for the year.

Looks like it still is
https://www.entitledto.co.uk/help/employment-and-support-allowance-contribution-based

• First contribution condition - in one of the last two complete tax years, you must have 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; and
• Second contribution condition - in both of the last two complete tax years, you must have paid or been credited with, Class 1 or 2 contributions on earnings of at least 50 times the lower earnings limit.

If he paid enough in the 21/22 tax year he still needs to meet the second contribution condition.

huckster

The January starting point for looking at benefit years for NI contributions record is stated in the guidance. Link below.

https://assets.publishing.service.gov.uk/media/666195892aec9626ea8805c9/adm-u1.pdf

p00hsticks

huckster said:

The January starting point for looking at benefit years for NI contributions record is stated in the guidance. Link below.

https://assets.publishing.service.gov.uk/media/666195892aec9626ea8805c9/adm-u1.pdf

From that document;

 1. “benefit year” means a period beginning with the first Sunday in January in any calendar year and ending with the Saturday immediately before the frst Sunday in January in the following year

 5. “tax year” is the period of 12 months beginning with 6 April each year

The start of the benefit year (in January) is when DWP advance the two tax years (starting in April) that are considered when looking at NI contributions. 

sheramber

momuse said:

He was self employed and I don't know what he earned over certain weeks I don't have those records only his total earnings. I just paid at the end of the year what he owed including NI contributions. We are not eligible for UC due to savings as we are both self employed.

You need to find out exactly what his self assessment returns calculated for each year that you are claiming credits.

Download the tax calculations for each year  as advised above or phone HMRC and ask them to send you copies for each year. these will show how much NIC was charged each year.

If phoning, the best time is frist thing when the lines open. Start dialling just before  time. Sometimes there are early starters who will answer the phones early.

Once you have copies , if you are still not sure, you can ask on the Cutting Tax board where some one will be able to explain it to you.