Does someone have to be an employee to qualify for extending their Working Tax Credits for 28 weeks by claiming ESA?

Hi

I have a client who is being made redundant on 31/07/2018.  The client is disabled and cannot do many jobs, although they are capable of some types of employment.  If the client claims ESA from 01/08/2018 (the GP is willing to give them a sick note) can their Working Tax Credit be extended by 28 weeks, even though they will not be an employee?

Thanks

I seem to remember dealing with a similar case and the regs don’t rule it out. The period of illness though needs to be start immediately after employment ends

Yes I think so. 6(3) in the Entitlement and Maximum Rate Regulations just requires that the person was in ‘qualifying remunerative work’ immediately before the period of sickness. Although this already seems to include self-employment, paragraph (5) goes on to explicitly make that clear. Link

Mr Finch, I think this is the correct link? https://revenuebenefits.org.uk/pdf/April_2018/2005_2002.pdf

I must admit, I thought the general principle was that if you’re “temporarily sick from work” (be it employed or self-employed), then you can get up to 28 weeks WTC - but if your work has ended, such that there is no work from which to be temporarily absent, then WTC would only run on for 4 weeks.

Does reg 7D (read in conjunction with reg 1A(d)) achieve that, or am I just wrong about this?

(And in cases where PILON is paid, reg 7C may also apply to limit WTC to 4 weeks?)