Child Tax Credits and Employment and Support Allowance

A question about : Child Tax Credits and Employment and Support Allowance

Hi,

My wife is receiving Employment and Support Allowance (and has beeneh last 3 or so years). We now have a child and following her appeal she has had Employment and Support Allowance re-instated and backpaid. My question is - do we declare Employment and Support Allowance as her income? (I have searched and apparently in some cases you do and in others you dont). Can anyone advice what it depends on before i call tax credits support to update our records?

Thank you

Best answers:

• Hi alirob 12
  I've moved your post to the Benefits and Tax Credits board where hopefully someone can help as the CAB board is now closed to new questions I'm afraid.
  MSE Wendy
• Hi, Contribution based ESA is a taxable income and income related ESA is not (it's means tested). Both should be reported to HMRC because CESA is taken into account when calculating entitlement, and IESA as a means-tested benefit which will fully 'passport' you to maximum CTC.
• CBESA is counted as income, IBESA is not but HMRC need to know about it as it entitles you to maximum tax credits.
  IQ
• Hi,
  Thank you for your comments. No i am not my wife's carer. And i have declared it when i filed the paperwork in January and April. I just wasnt sure, whether it counted as income or not.
  What is the difference between income related ESA or Contributions based ESA?
  Thank you
• The difference between the 2 types: Type one is contribution based and relies on Nat Insurance paid via employment for 2 previous tax years - current 09/10 & 10/11 till 31st Dec then it becomes 10/11 and 11/12. So I assume that as she has not worked for at least 3 years that she would be on income related ESA (type two) and if she is in the support group it would entitle you to the couples rate of at least Ј166.80 per week - could be more depending on severity of Disability. Depending on whether you are in rented housing or have a mortgage you would get help with that(housing benefit or SMI) and would not need to pay for council tax or if you do get some income then you'd get a reduced rate. You'd get free NHS care for dental/tablets/eyes the latter not always full costs but it does cover the test and basic lenses/frames. So does this sound like your circumstances?
  Now that you also have a child, you would also automatically qualify for both child tax credit and child benefit. Which are approx Ј62.09 and Ј20.30/week currently. The CTC will go upto Ј62.79 in April. CB will not go up until 2014. To get the full CTC it has to be support group ESA Income related. If you have not already done so, get in touch with your energy supplier to see if you can get the warm front home discount of Ј130 - ring the one who supplies the electric and ask. Closing is 31st Dec for this year.