Employment and Support Allowance

[wrecked]

Hi,

 

I have been self employed since 1999. As of 2003 on wards i have not been paying myself any salary nor NI contributions or PAYE because theres been no income to my company and I have been investing and developing a new product. I had no income. I used my own savings and finally, re-mortaged my house to finance. I had a break down in 2010 and then again last year and have been off work since june 2010. I did not know anything about benefits and regretably did not apply for any until someone adised me that i was entitled to DLA and ESA. I have now been granted DLA but unfortunately I just received a letter from Jobcentreplus/DWP that they cannot pay me any Employment and Support Allowance because I have not paid or been credited with, enough National Insurance Contributions.

 

Can any one help?

 

According to Direct.gov. uk there are two entitlements - Contribution based or Income related.

It states under Income related that :

 

You may be entitled to claim income-based Employment and Support Allowance if you do not have enough money coming in, or you have not paid enough National Insurance contributions, and you satisfy the entitlement conditions.

 

I desparately need ESA as it will help me with my mortgage. Without it, I am well and truly stuffed.

 

Can any one please advise me what to do next as i am really not knowledgable at all.

 

My initial application for ESA was contribution based, so shall I ask them to consider me on Income related?

 

Thank very much

Wrecked.

[honeybee13]

Hello there.

 

I think you're probably on the right tack about income-based ESA, but I have a feeling it can be complicated. Hopefully someone in the know will be along soon so you can go about this the right way.

 

My best, HB

[wrecked]

Hi HB

 

Thanks for such a fast reply. So how are things in La La Land?

 

I can show details of my investment etc. as all were recorded. And I can also show that I have not taken any drawings or paid myself any salary.

But what would I have to do? Re-apply?

 

thanks

Wrecked

[MIKEY DABODEE]

when you apply for ESA you are automatically considered for both, if you are entitled to Conts then thats what you are awarded but if not entitled you should automatcally get the IB, but as you have been self employed they may want a B16 completed you should get the letter soon.

I am presuming you are a single person, or if you have a partner she works under 24 hrs....

Ring them and see if they need the B16 completing

 

the mortgage, you are entitled to help after 13 weeks so if you declared the mortgage on the claim form it will be referred to the section, they will issue the Mi12 form for your lender to complete.

 

the only problem I can see is that you state, you remortgaged to finance your buisness, so help with your mortgage may be limited

[wrecked]

Hi Mickey

 

wow - thanks for that info.

The Jobcentre mentioned nothing at all about considering both Contribution or Income.

They just stated that they cannot pay me any ESA on the basis that I have not paid enough NI contributions to be used in the assessment.

They stated that they checked the tax years 05 April 2009 and 05 April 2010 to assess my claim. Thats it. Its as short as that.

 

I am single (separated for many years - my wife lives separately) and I have no partners. There are no one else contributing to anything in my house.

(My daughter lives with me and she is a full time student.)

 

I declared the mortgage but not heard anything regarding Mi12 form.

 

How do I approach them ? Any suggestions you can give will be greatly appreciated.

 

Many thanks

Wrecked.

[MIKEY DABODEE]

just give them a ring tomorrow and say you have received the letter stating that you are not entitled to ESA conts but if not entitled to that you should therefore maybe entitled to ESA IB...

the ESA1 form you filled out at the start of your claim covers both

 

they may want a B16 filled out thats a form for self employment it will t

ell them what assets if any you hold in your company..

 

after that if they need it then it may be refer to a decision maker...

 

but as you have stated your buisness has no assets there shouldnt be a problem.

 

as for your daughter she is whats called a non dep.

 

so this may effect your mortgage she is a student so her income may be considered but again that will be looked at when the time is right.

 

you need to get your claim up and running as ESA IB first then the Mi12 will be sent.

do a bit of chasing tomorrow

 

also claim HB for help with your council tax

[wrecked]

Hi Mikey,

 

Thank you for all this. I am very grateful.

Will check it out tomorrow and let you know

 

Best

Wrecked.

[wrecked]

Hi Mikey

 

Unfortunately, you are not automatically considered for Income related, if you have been rejected for Contribution based. You have to phone up and ask - so thanks for your advice. They are sending me a new form to complete for income related.

 

Regarding the forms you mentioned - I asked them to send those as well - as again, they do not automatically send them out.

You have to ask.

 

So thanks Mikey - as soon as I receive the forms, I'll let you know.

 

Best

Wrecked.

[MIKEY DABODEE]

the ESA1 covers both so if you fill it out and not ent to Conts then you should get the IB

but it differs from BDC to BDC, this you have fill out the form again..

when they already have your info

but nevermind at least you will be sorted out.

remember to ask for backdating to the date of your orginal claim

and how would you know you have to ask for a B16?

but at least now they will send it

Edited February 24, 2012 by MIKEY DABODEE

[Rover87]

The ESA1 does cover both C and IR parts of the benefit - but you have to tick the box and complete all the parts of the form for this. You can just fill in the ESA C bit without having to go into details of savings etc. They should be sending you whats called an ESA3 form to see if you qualify for the IR...

[wrecked]

HI

 

I am so sorry - i hv been off air. however, the good news is that they have started to pay me ESA. I have no way of knowing why though because at first, as per this thread, I was rejected. When I was rejected, as advised by Mickey - I called up and asked for consideration on Income based and asked about the Mi12 form. I was not sent any of the forms that i asked. Instead, I received ESA .... just on Monday - i had no idea. so I now find myself in a peculiar position - i dont want to do anything to affect the ESA i am getting, because at least, i am getting something. But at the same time, its not sufficent and i do need help with the mortgage. I guess i will hv to bite the bullit, write to them, ask about help with the mortgage and see what happens. What do you think?

 

Best/Wrecked.

 

Thanks so much for all your help.

[wrecked]

Hi

I went to my local job centre and explained my situation and the guys there gave me form Mi12.

The section on the type of mortgage worries me, as I took out the mortgage to give money my brother , carry out some home improvments and finance my business. Of course, I can prove all of them. But even so, how do I stand with these issues? Can anyone advise?

Thanks/Wrecked.

Edited March 22, 2012 by wrecked
incorrect spelling

[MIKEY DABODEE]

you may only get SMI on the interest iro of the original loan taken out to purchase the house, they may consider help for the further advancement you may have taken out if it was for essential work/repairs on your property....

 

They will not give you any help towards interest on the loan you took out to help your brother

 

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/BenefitsTaxCreditsAndOtherSupport/On_a_low_income/DG_180321

[wrecked]

Hi Mikey,

 

I am so sorry. i see that I have not responded to your message.

 

i still have not been able to make the application and submit the Mi12 form as i have been really busy with a few issues and then fell ill again.

 

I thought I had replied to you but when I logged on today to check your comments as i am now about to submit the Mi12 form - I see that my post in march was not listed.

Again, Sincere apologies. Your comments and link was very helpful and i will keep you posted on the developments. i do hope that everything will go through OK.

 

thanks/Wrecked.