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HMRC internal manual

Tax Credits Manual

From
HM Revenue & Customs
Updated
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Eligibility - remunerative work (determining): Illness, incapacity or limited capability for work (Info)

A person is treated as being engaged in qualifying remunerative work for any period during which they are paid any of the following

  • Statutory Sick Pay
  • short-term Incapacity Benefit, at the lower rate under Section 30A to 30E of the Social Security Contributions and Benefits Act 1992
  • Income Support (IS), on the grounds of incapacity for work under paragraphs 7 and 14 of Schedule 1B to the IS (General) Regulations 1987
  • Employment and Support Allowance (ESA), on the grounds of limited capability for work under Part 1 of the Welfare Reform Act

or receive

  • National Insurance credits, on the grounds of either incapacity or limited capability for work under regulation 8B of the Social Security (Credits) Regulations 1975.

The person must have been engaged in qualifying remunerative work immediately before the beginning of the period.

If the person is paid IS or ESA or receives National Insurance credits they’re treated as being engaged in remunerative work for a period of 28 weeks only. This period begins with the day on which they’re paid IS or ESA or receive National Insurance credits.

A self-employed person is treated as engaged in qualifying remunerative work for the necessary number of hours during any period as listed earlier in this guidance, provided that

  • they performed the work in the week immediately before the period began
  • the work was done for payment or in expectation of payment
  • the work wasn’t performed under a contract of service or apprenticeship.