how does esa affect tax credits??

i just tried contacting tax credits to inform them i have been awarded esa work related rate and have received a lump sum back and i was told i needed to know how many weeks this award was for and give a estimate of the yrs esa payments which i tried to do but the man i was speaking to couldnt understand me and i couldnt understand him in the end i said i would call back. Does the fact i know recieve esa mean i am going to lose a lump of my tax credits? Any advise would be great x

lollyred1 wrote:

i just tried contacting tax credits to inform them i have been awarded esa work related rate and have received a lump sum back and i was told i needed to know how many weeks this award was for and give a estimate of the yrs esa payments which i tried to do but the man i was speaking to couldnt understand me and i couldnt understand him in the end i said i would call back. Does the fact i know recieve esa mean i am going to lose a lump of my tax credits? Any advise would be great x

Are you receiving contribution-based ESA or income-based ESA? What tax credits do you receive ie the components such as child tax credit/working tax credit, not the amounts involved?

hi i sure its contribution based but it doesnt say it on any of the paperwork i have received about my esa claim, i receive child tax credit and a small amount of working tax credits for my partner

lollyred1 wrote:

hi i sure its contribution based but it doesnt say it on any of the paperwork i have received about my esa claim, i receive child tax credit and a small amount of working tax credits for my partner

The award of ESA may well have an effect on your tax credits, and as such it would be recommended to notify HMRC in writing giving details of the ESA award, and let them take the initiative. In my opinion, communicating with government departments by letter is more preferable than a telephone call.

Tax credits are not something we deal with directly in the forum, but if any members have been in a similar position, they are free to comment if they so wish?

Read page 12

www.hmrc.gov.uk/leaflets/wtc2.pdf

Hi,this might be helpful.My husband works 20 hrs a week and we qualify for WTC,i receive IB and it is taken into account for WTC purposes.He should receive double the amount he currently receives but it is reduced because of my income from I.B.I t would seem that any income from whatever souce needs to be notified.Jackie.