Impact of ESA on Tax Credits

Hello!

I wonder if you could please help me, as I am due to be interviewed by HMRC in a few days time regarding my working tax credits claim.

The issue seems to be that I am simultaneously in receipt of PIP, (enhanced rate), ESA and working tax credits.

When I appealed against the DWP’s refusal to award me ESA in 2021, I did not conceal that I was in receipt of working tax credits, and, as my appeal was granted, I had no idea that there was anything amiss with my eligibility. Prior to my appeal, I had been on contributory ESA and I appealed because this ended after a year, despite the continuing impact of my disabilities on my ability to work. Incidentally, I believe that my ESA is still called contributory ESA.

I suffer from lupus, Lyme disease and fibromyalgia and the number of hours I work fluctuates significantly from week to week. I am self employed, and, on a good week, I may work for, say 18 hours or more, whereas, on a bad week, I work less than 16 hours and may not even work at all. As I am currently under investigation for chest pain in addition to my stated disabilities, I probably average around 14 hours per week at present. However, I am hoping to get my hours back up eventually.

Are you able to give me any advice please, as I am concerned that I will be required to repay the Working Tax Credit I have received, even though I was unaware of any issues with my claim until now. In fact, I wrote to HMRC some years ago to request a disability premium on my tax credit payments, but I did not receive any response. Whether or not I should have been receiving this additional element, I have no idea.

I know that, for Working Tax credits, a disabled person usually needs to work a minimum of 16 hours per week and that, for ESA, hours worked should normally be less than 15 hours per week, but what is the position when, like myself, my hours fluctuate between the two? Also, as I’m on enhanced rate PIP, does the 16 hour requirement even apply to me? I haven’t been able to find anything online to the effect that eligibility for ESA precludes eligibility for tax credits.

Any assistance you can provide would be most gratefully appreciated, as this problem is causing me sleepless nights at the moment.