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Thread: Linking rules esa when was in receipt of disability element of tax credits

  1. #1
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    Linking rules esa when was in receipt of disability element of tax credits

    Hi,

    I would really be grateful if any of you knowledgeable people could tell me if this publication is still in use

    PAYE77250

    http://www.hmrc.gov.uk/manuals/pommanual/paye77250.htm

    I want to KNOW for definite if the linking rules when in receipt of the disability element of tax credits has also been abolished.

  2. #2
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    Ok, thanks for replying. I will give them a call.

    ALso whilst looking into this I found this posted

    https://groups.google.com/forum/#!to...on/fz86ttA8_74

    Its in regards to contribution based ESA and tax? It seems that although some of it is taxable not all of it is??? My P60u was always a different amount to that that I stated on my tax credits as when you fill in the tax credit calculation it automatically calculates ALL of your contribution based esa as taxable but I don't think it is or ever was?

    This would potentially mean that someone like myself was actually probably due more tax credits if we have children???

  3. #3
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    I have spoken to about 4 different advisors on linking rules and no-one can give me any answer other than that of "my claim is now a new claim because you went out to work for more than 12 weeks so cannot be linked. My MP has telephoned me this morning also and she is going to speak to a minister about the disability element of tax credits and whether the linking rules on this has also been abolished as the HMRC document above seems to state different but I don't know the date of this publication.

    Also I have just found this on my "new claim" (if it is that I have now got to accept I have a new claim).

    This seems to state here that I could use my NI payments I made last tax year (being 2012/13) on my new claim but I have been told by the jobcentre that I cannot and this was by 4 different advisors and they HAVE to use 2010/11 and 2011/12 and it cannot be adapted and my NI that I paid in 2012/13 can only be used from January, 2014.

    I paid NI class two for 32 weeks from September, 2012 until April, 2013. I wanted the jobcentre to accept this year as my new tax year to get me onto a "money" payment for my new claim.

    Would someone here give me their view on this publication if you can?

    From the publication here it states
    http://www.dwp.gov.uk/docs/admu1.pdf


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

    relevant benefit year” means the benefit year which includes the beginning of the PLCW which includes the relevant benefit week

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

    relevant benefit week” means the week in relation to which entitlement to ESA is being considered

    Where U1030 applies the meaning of “relevant benefit year” at DMG U1027 4. is modified so that it is any benefit year which includes all or part of the PLCW which includes the relevant benefit week.

    U1030 The modification in U1029 applies to a claimant who
    1.
    does not satisfy
    1.1 the first or second contribution conditions or
    1.2 both conditions and
    2.
    would satisfy the conditions in 1. if that modification applied.

    U1031 This enables a claimant to become entitled to ESA on a further claim in a subsequent benefit year where
    1.
    they now satisfy the contribution conditions and
    2.
    an earlier ESA claim was disallowed because they did not satisfy one or both of the contributions conditions when the PLCW began.

    U1032 The first contribution condition is satisfied1 if
    1.
    the claimant has actually paid class 1 or class 2 NI contributions in respect of any one of the last two complete tax years before the beginning of the relevant benefit year and
    2.
    those contributions have been paid before the relevant benefit week and
    3.
    the claimant’s earnings for that year as determined in accordance with U1033 must be at least 26 times the LEL for that year.

    Relaxation of the first contribution condition
    U1035 The first contribution condition is taken to be satisfied1 if
    1.
    the claimant has paid Class 1 or 2 contributions for any one tax year before the relevant benefit week2 and

    2.
    the claimant has
    2.1 earnings at the LEL in that tax year on which Class 1 contributions have been paid or treated as paid which in total, and disregarding any earnings which exceed the LEL for that year, are not less than the LEL multiplied by 26 or

    2.2 earnings factors in that tax year derived from Class 2 contributions multiplied by 26 and

    3.
    the claimant
    3.1 was entitled to CA in the last complete tax year immediately before the relevant benefit year in which the first day of LCW occurred

    EDIT


    Please ignore above as I was not entitled to CA (which I had thought was contribution allowance but is actually Carers allowance I think so it really does not help with my claim. I will most probably have to accept I will never be entitled to ANY payment of ESA ever again or at least whilst I really need this to save my roof.

    Going out to work has ruined everything for me. I need to find a way back to contribution based ESA on my new tax year of 2012/13 as I would have been entitled to claim again IF this tax year could be used in my claim. I am now waiting for another call from the jobcentre regarding this as I think as I read the above, that I should qualify??? Its also in DMG 41026, 41027 and 41028
    Last edited by KAREN SV; 02-09-13 at 14:54. Reason: DOES NOT APPLY TO ME......

  4. #4
    glasgowadviser
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    I know nothing much about tax codes etc but the linking rules were changed in may last year. now its a 12 week period for esa that claims can be linked (there is an exception for housing costs).

    I am unsure of your exact question re the disability element?

  5. #5
    glasgowadviser
    Guest
    re the tax years question if your claiming now they would use april 10/11 and april 11/12. you must satisfy two tests.

    1. you must have paid or been credited with an ni stamp in BOTH tax years
    2. in any one tax year you must have PAID 26 weeks worth of ni stamp.

    if you don't meet those two tests you may be able to claim conts based jsa. this is because the tax years used are different if you claim after a period of limited capability for work.

  6. #6
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    @ KAREN SV the link you provided at post num 5 applies to claimants who are getting (new) ESA under Universal Credit.

  7. #7
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    Hi, thanks all for the replies.

    I have rang the jobcentre and asked that they look at

    DMG 41026
    DMG 41027
    DMG 41028

    41026 Where DMG 41027 applies the meaning of “relevant benefit year” at DMG 41024 4.
    is modified so that it is any benefit year which includes all or part of the PLCW which
    includes the relevant benefit week1.
    1 ESA Regs, reg 13(1)
    41027 The modification in DMG 41026 applies to a claimant who1
    1. does not satisfy
    1.1 the first or second contribution conditions or
    1.2 both conditions and
    2. would satisfy the conditions in 1. if that modification applied.
    1 ESA Regs, reg 13(2)
    41028 This enables a claimant to become entitled to ESA(Cont) on a further claim in a
    subsequent benefit year where
    1. they now satisfy the contribution conditions and
    2. an earlier ESA claim was disallowed because they did not satisfy one or both
    of the contributions conditions when the PLCW began.

    Its worth a look into as as I read it my 2012/13 contributions of 32 weeks Class 2 (you would need 26 weeks to qualify) may be able to be used for my new claim? They are asking the decision makers on this one for me but I don't know how long this will take.

    My MP rang yesterday and she is sending out a form to allow her to look into my claim for me. She has said that she does not know about the disability element of tax credits and will ask the minister who deals with these things. I will just have to wait now for the jobcentre to get back to me and see if their "puter says no".

    My 2010/11 and 2011/12 contribution years are both up to date with credits so to enable me to make another reclaim of ESA contribution based I would have needed to have worked and I have and paid over 26 weeks of class 2.

    2011/12 was not used in making a claim for ESA so that is a different year used for the contributions criteria as one year used has to be different to a previous claim and the rule on working which I have.
    Last edited by KAREN SV; 03-09-13 at 09:55.

  8. #8
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    Quote Originally Posted by glasgowadviser View Post
    re the tax years question if your claiming now they would use april 10/11 and april 11/12. you must satisfy two tests.

    1. you must have paid or been credited with an ni stamp in BOTH tax years
    2. in any one tax year you must have PAID 26 weeks worth of ni stamp.

    if you don't meet those two tests you may be able to claim conts based jsa. this is because the tax years used are different if you claim after a period of limited capability for work.
    I am asking if they can modify my tax years used to include 2012/13 as this would qualify me for another claim of contribution based ESA as per the DMG's in my above post.

    I cannot claim JSA as I am unwell to work at present.
    Last edited by KAREN SV; 03-09-13 at 10:00.

  9. #9
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    Quote Originally Posted by davewhit View Post
    you don't need to be getting benefits to be awarded disability working tax credits
    I was awarded the disability element of tax credits (not the severe disability element) because I took on work of 16 hours or more. It was stopped as soon as I lost my job due to my surgery.

  10. #10
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    Quote Originally Posted by davewhit View Post
    you don't need to be getting benefits to be awarded disability working tax credits
    I thought you needed to be in receipt of, at least, Middle rate Care component of DLA to receive Disability TC's .

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