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Forum Home  →  Discussion  →  Income support, JSA and tax credits  →  Thread

Classed as working for Tax Credits

jeanette
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Welfare rights - Newcastle City Council

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Total Posts: 47

Joined: 25 June 2010

I have a client he has been off work 7 years and he is on an employer disability scheme where he receives 70% of his wages, it is reviewed every 10 years. He has working tax credits including the disability premium.

He said years ago HMRC advised that as he is not on SSP the 28 week rule did not apply, his16k per annum earnings are uploaded by his employer on to RTI.

I’ve never heard of this scheme and I can’t find anything in the regs, other than treating it like a suspension, where he would be classed as working.

First question, has anyone had similar and found an answer?

Second question, he has just claimed CB ESA so in direct conflict with Tax Credits as ESA eligibility is he works less than 16 hours a week and earns less than £152 a week?

I know there are sometimes conflicting rules that allow benefits to be paid by different departments, but he cant have both CB ESA, WTC & Disability can he, and surely when he adds the CBESA to his annual income this is going to raise an few questions?

stevenmcavoy
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Welfare rights officer - Enable Scotland

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I had similar once but so long ago I cant remember any of the specifics of where I checked the answer.

client was employed by an american company and when they went off sick they basically just stayed on their full wage with no time limit…never went onto SSP like your guy and so never got got an SSP1 etc.

like you I had never seen such a scheme but yeah they were still getting tax credits like yours and I didnt find an issue with it at the time.

stevenmcavoy
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Welfare rights officer - Enable Scotland

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stevenmcavoy - 09 February 2023 07:53 PM

I had similar once but so long ago I cant remember any of the specifics of where I checked the answer.

client was employed by an american company and when they went off sick they basically just stayed on their full wage with no time limit…never went onto SSP like your guy and so never got got an SSP1 etc.

like you I had never seen such a scheme but yeah they were still getting tax credits like yours and I didnt find an issue with it at the time.

one I had didnt get ESA though.

Helen Rogers
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Welfare rights officer - Stockport MBC

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It is possible to be in receipt of both ESA and WTC. People who aren’t entitled to SSP, eg self employed, can claim ESA and WTC for the 28 week run on.  In fact, they need to claim ESA to be entitled to that run on.