Beta This part of GOV.UK is being rebuilt – find out what this means

HMRC internal manual

Tax Credits Technical Manual

From
HM Revenue & Customs
Updated
, see all updates

Entitlement: WTC entitlement - Disability element: "Qualifying benefits test”

The Working Tax Credit (Entitlement and Maximum Rate) Regulations 2002, Reg. 9(2)

A person meets this test if the claimant or in the case of a joint claim one of the claimants satisfies one of the following cases (see notes 1 & 1A):

Reg. 9(2) Case A

On at least one of the preceding 182 days (the “qualifying day”) he or she was in receipt of, or in the case of a limited capability for work credit entitled to one or more of the following:

  • Higher rate short-term Incapacity Benefit
  • Long term Incapacity Benefit
  • Severe Disablement Allowance
  • Employment and Support Allowance (ESA) or a limited capability for work credit, where entitlement to ESA, or a limited capability for work credit, or Statutory Sick Pay, or a benefit or allowance in the first 3 bullets points above, or Income Support with a disability premium or higher pensioner premium, has existed for a period of 28 weeks immediately preceding the qualifying day comprising one continuous period or two or more periods which are linked together. (See notes 2 and 3)

Reg. 9(3) Case B

On at least one of the preceding 182 days (the “qualifying day”) he or she was in receipt of one or more of the following which includes a Disability Premium or Higher Pensioner Premium because of that person’s own disability:

  • Income Support
  • Income-Based Jobseeker’s Allowance
  • Housing Benefit
  • Council Tax Benefit or under a Council Tax Reduction Scheme

Reg. 9(4) Case C

On a day for which the maximum rate of tax credit is determined at least one of the following is payable to them:

  • Disability Living Allowance
  • Attendance Allowance
  • Industrial Injuries Disablement Benefit with Constant Attendance Allowance or Mobility Supplement
  • War Disablement Pension with Constant Attendance Allowance or Mobility Supplement
  • Personal Independence Payment
  • Armed Forces Independence Payment

Reg. 9(5) Case D

He or she has an invalid carriage or other vehicle provided under the Invalid Vehicle Scheme.

Reg. 9(6) Case E

Where the person has received on account of incapacity for work, or having limited capability for work, any one or more of the following for 140 days or more with the last day of receipt falling within the preceding 56 days (see note 5):

  • Statutory Sick Pay
  • Occupational Sick Pay
  • Incapacity Benefit paid at the short-term lower rate
  • Income Support paid on the grounds of incapacity for work
  • An Employment and Support Allowance.
  • National Insurance credits for a period of 20 weeks on account of having incapacity for work or limited capability for work

and

he or she has a disability which puts them at a disadvantage in getting a job TCTM02530 and is likely to last for at least 6 months or for the rest of their life

and

their gross earnings are at least 20% less than they were before the disability began, with a minimum reduction of £15.00 (gross) per week.

Reg. 9(7) Case F

  • On one of the preceding 56 days he or she was engaged in training for work see TCTM02520

and

for one or more of the 56 days immediately preceding the start of that period of training for work, he or she was receiving, or in the case of a limited capability for work credit entitled to one of the following

  • Incapacity Benefit at the short-term higher rate
  • Incapacity Benefit at the long-term rate
  • Severe Disablement Allowance
  • Contribution based Employment and Support Allowance (ESA), or a limited capability for work credit, where entitlement to Contributions-based ESA, or a limited capability for work credit, or Statutory Sick Pay, or a benefit or allowance listed in the first 3 bullet points above, followed by Contributions-based ESA, or a limited capability for work credit for a combined period of 28 weeks or more. If the person received Statutory Sick Pay they must meet the contributory conditions for Contributory ESA. (see Notes 3 and 4)

Reg. 9(8) Case G

Where a person was entitled for at least one day in the preceding 56 days to the disability element of WTC or Disabled Person’s Tax Credit by satisfying cases A,B,E, or F at some earlier time, then he shall be treated as still satisfying those conditions.

For example

A person with a disability that puts them at a disadvantage in getting a job starts working 15 hours a week on 2nd April 2007 and their long term Incapacity Benefit ceased. On 30th September 2007 they started working 18 hours per week and claimed WTC, including the disability element. They satisfied the qualifying benefits test because they had received long term Incapacity Benefit for at least 1 day in the last 182 days prior to the date of claim, meeting case A. As they continued to meet the qualifying conditions throughout 2007/2008 when they claimed for 2008/2009 they met the conditions of case G because they had received the disability element of WTC for at least 1 day in the last 56 days.

Note 1: The person must be entitled to receive the “qualifying benefit” in his or her own right. An appointee receiving any of the benefits listed above on behalf of another person does not satisfy the disability conditions simply by receiving the benefit.

Note 1A: A person may have entitlement under more than 1 case at the same time. For example a person currently qualifying under case C (by receipt) of DLA may also qualify under case G as they satisfied the requirements of case A at an earlier time.

Note 2: The 28 weeks does not need to be a single continuous period. The claimant can add together any periods that they received ESA, or limited capability for work credit, or statutory sick pay, or incapacity benefit short-term higher or long-term rate, or severe disablement allowance, or income support with a disability premium or higher pensioner premium.

Note 3: The 28 weeks does not need to be a single continuous period. The claimant can add togetherany periods that they received SSP, as long as they were no more than eight weeks apart.

Note 4: The 28 weeks does not need to be a single continuous period. The claimant can add togetherany periods that they received SSP with periods that they received contribution-based ESA, or limited capability for work credit, or incapacity benefit, short-term higher or long-term rate, or severe disability allowance as long as they were no more than 12 weeks apart and they met the contribution conditions for contribution-based ESA on the days that they received SSP

Note 5: The 140 days (20 weeks) need not be a single continuous period; it can be made up of any periods of receipt of the benefits or credits which are separated by 8 weeks or less. Any such periods can be linked together to satisfy the 140 days (20 weeks) condition.