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ESA not eligible, not enough tax credits

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  • Dazed_and_C0nfused
    Dazed_and_C0nfused Posts: 17,669 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    edited 13 October 2024 at 8:57PM
    I wonder if the op's husband is one of those people who didn't register as self employed with HMRC from a Class 2 NI perspective?

    So although tax returns have been filed and any tax and Class 4 NI due might have been paid Class 2 NI, which is is key for benefits and State Pension purposes, wasn't charged (or paid)?
  • TELLIT01
    TELLIT01 Posts: 18,044 Forumite
    Part of the Furniture 10,000 Posts Name Dropper PPI Party Pooper
    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.

    @Spoonie_Turtle thanks for the confirmation.  It caused chaos for us working on ESA claims processing when the change happened.  All the tools we had for doing the calculation were giving wrong information!
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