SSDI in uk question

Firstly apologies if this is on the wrong board, i wasnt sure where i should post it. Basically my other half gets SSDI from the usa, because the uk dont recognise it as disability they just class it as a income i have lost most of the benefits i was on ( i care for my disabled son, i was getting income support plus housing.council tax benefit in full) I just wanted to know if we can get a blue badge for the car for her and if there is any more help we are entitled to because she is disabled?( i really cant understand why they don't class it as disability payment here)

Thanks for any advice

Hi,

You'll need to speak with a US/UK tax advisor who can then begin to perhaps provide you with more information you can then take to the UK government departments to see if you are eligible for. Perhaps you need to have medical assessments done as well and relevant documents provided to support your scenario/requirements/eligibility status etc.

As this is all personal and specific to you, it's hard to give definitive answers here on a web forum.

Good luck !

Cheers, DtM! West London & Slough UK!

I would speak with a tax advisor. But, this is my understanding:

* the extra foreign pensions paid to you if you have been retired because you were disabled by injury on duty or by a work-related illness

* any part of a pension from overseas that reduces the amount of tax-free UK war widows' and dependants' pensions

* social security benefits which are similar to UK benefits that are tax-free - child benefit, maternity allowance, guardian's allowance, child's special allowance, bereavement payments, incapacity benefit (only for first six months if it began on or after 13 April 1996), attendance allowance, disability living allowance and severe disablement allowance.

Therefore, SSDI is non-taxable income in the UK as it is the US's version on DLA. (SSI is taxable because it isn't based on a disability.)

http://www.taxguide.co.uk/content/what-foreign-income-taxed



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In regards to the Blue Badge, I thought it was very similar to how you get a disabled parking permit in the US. Essentially...

Who can get a Blue Badge
You’re automatically eligible for a Blue Badge if you:
are registered as blind
get the higher rate of the mobility component of Disability Living Allowance (DLA) [SSDI will help with your application]
get Personal Independence Payment (PIP) and scored 8 points or more in the ‘moving around’ area of your assessment - check your decision letter if you’re not sure
get War Pensioners’ Mobility Supplement
received a lump sum payment as part of the Armed Forces Compensation scheme (tariffs 1 to , and have been certified as having a permanent and substantial disability

If you're not automatically eligible
You might still be able to get a badge. You'll have to fill in an extra part of the application to show why you need one.
You should do this if:
you have problems walking that are permanent, or that your doctor says are likely to last at least a year
you can't use your arms
you're applying on behalf of a child aged over 2 who has problems walking, or a child under 3 who needs to be close to a vehicle because of a health condition
The application is more complicated if you're not automatically eligible. It's worth getting help from an adviser at your nearest Citizens Advice to fill in the form properly.

https://www.citizensadvice.org.uk/benefits/sick-or-disabled-people-and-carers/help-for-disabled-travellers1/blue-badge-scheme/applying-for-a-blue-badge/

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This is from the HMRC.  So, SSDI should be non-taxable as it corresponds to DLA.

Social security benefits
 Don’t include foreign benefits that match the following UK benefits:
•  Incapacity Benefit paid in the first 28 weeks  of your incapacity or if you’ve been getting it  for the same illness since before 13 April 1995
• Attendance Allowance
•  Disability Living Allowance or Severe Disablement Allowance
• Maternity Allowance
• Guardian’s Allowance
• Child Benefit
• Universal Credit

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/604126/sa106-notes-2017.pdf

Yes, SSDI is not taxed in the UK, however that only helps for income tax. The OP says it is being classed as income in order to determine a threshold for benefits. That might follow completely different rules.

For the blue badge you need to go to your local council office service center and pick up an application form. There is a nominal fee (e.g £10). A photo is required but they may take that themselves in the council office. Proof of address will be needed. Depending on the medical condition there may be an assessment carried out with a doctor.

Re: Blue badge.  I just got mine, finally.  I applied online and submitted my proof of address and photo in the post.  They checked with the GP I'm registered with for medical information, and that was that.  To get started, go here:  https://www.gov.uk/apply-blue-badge

Yes, SSDI is not taxed in the UK, however that only helps for income tax. The OP says it is being classed as income in order to determine a threshold for benefits. That might follow completely different rules.

I have been working with HMRC since 2015 with regard to SSDI paid in the UK..  HMRC do not class it as the equivalent to DLA or PIP and it is taxable in the UK.  SSDI is more inline with Incapacity Benefit paid out for a disability and the amount you get is dependent on the number of Social Security Credits you have paid over the years. At the moment only 90% of the amount paid is taxable in the UK but from next year it will be taxed at 100%.  DLA or PIP can be paid to anyone who has a qualifying disability they do not have to have paid any National Insurance Contributions to be paid the benefit.

I have been working with HMRC since 2015 with regard to SSDI paid in the UK..  HMRC do not class it as the equivalent to DLA or PIP and it is taxable in the UK.  SSDI is more inline with Incapacity Benefit paid out for a disability and the amount you get is dependent on the number of Social Security Credits you have paid over the years. At the moment only 90% of the amount paid is taxable in the UK but from next year it will be taxed at 100%.  DLA or PIP can be paid to anyone who has a qualifying disability they do not have to have paid any National Insurance Contributions to be paid the benefit.

There's another recent thread that touches on SSDI here: http://talk.uk-yankee.com/index.php?topic=90957.0

Now there seems to be some discrepancy in the tax advice (I realize OP's situation isn't about taxability... I'm just looking for clarification on this point).  I have spent quite a lot of time trying to find policy/statutory authority to support a definitive answer.  Can you point me in the right direction?

There's another recent thread that touches on SSDI here: http://talk.uk-yankee.com/index.php?topic=90957.0

Now there seems to be some discrepancy in the tax advice (I realize OP's situation isn't about taxability... I'm just looking for clarification on this point).  I have spent quite a lot of time trying to find policy/statutory authority to support a definitive answer.  Can you point me in the right direction?

I have had several phone calls with a HMRC tax specialist over the last two years and what I have been told is that to be able to claim SSDI as comparable with a UK disability benefit you have to look at the qualifying conditions.  They must be based on the same or very similar conditions and DLA/PIP are very different from SSDI.

https://www.ssa.gov/planners/disability/dqualify2.html

"In addition to meeting our definition of disability, you must have worked long enough--and recently enough--under Social Security to qualify for disability benefits.

Social Security work credits are based on your total yearly wages or self-employment income. You can earn up to four credits each year.

The amount needed for a credit changes from year to year. In 2017, for example, you earn one credit for each $1,300 of wages or self-employment income. When you've earned $5,200, you've earned your four credits for the year.

The number of work credits you need to qualify for disability benefits depends on your age when you become disabled. Generally, you need 40 credits, 20 of which were earned in the last 10 years ending with the year you become disabled. However, younger workers may qualify with fewer credits." 

https://www.gov.uk/pip/eligibility

You must be aged 16 to 64 and have a health condition or disability where you:

    have had difficulties with daily living or getting around (or both) for 3 months
    expect these difficulties to continue for at least 9 months (unless you’re terminally ill with less than 6 months to live)

You must have lived in England, Scotland or Wales for at least 2 of the last 3 years, and be in one of these countries when you apply. If you’ve recently returned from living in another EEA country, you might be able to get PIP sooner.

The process is different in Northern Ireland.

You can get PIP whether you’re working or not.

There are additional rules if you live abroad or if you’re not a British citizen.

As you can see the qualifying conditions are very different. SSDI is more like ESA. Both of these benefits are based on the number of qualifying contributions that have been paid into the system.

https://www.gov.uk/employment-support-allowance/eligibility

You may get Employment and Support Allowance (ESA) if your illness or disability affects your ability to work and you’re:

    under State Pension age
    not getting Statutory Sick Pay or Statutory Maternity Pay and you haven’t gone back to work
    not getting Jobseeker’s Allowance

You can apply for ESA if you’re employed, self-employed, unemployed or a student on Disability Living Allowance or Personal Independence Payment.

You may get ESA if you’ve lived or worked abroad and paid enough UK National Insurance (or the equivalent in an EEA or other country with which the UK has an agreement).

Personally I don't put much stock in information from government helplines. I always seek professional independent advice and the person giving advice takes responsibility for it, based on the information I give them.

I have had several phone calls with a HMRC tax specialist over the last two years and what I have been told is that to be able to claim SSDI as comparable with a UK disability benefit you have to look at the qualifying conditions.  They must be based on the same or very similar conditions and DLA/PIP are very different from SSDI.

So, if I am understanding you correctly, you're saying that the specific medical condition under which the SSDI was approved has bearing on how the benefit is classed in the UK?  I don't really follow.

Also, is the HMRC tax specialist you've been in touch with a government employee or an independent professional who specializes in tax issues?

So, if I am understanding you correctly, you're saying that the specific medical condition under which the SSDI was approved has bearing on how the benefit is classed in the UK?  I don't really follow.

Also, is the HMRC tax specialist you've been in touch with a government employee or an independent professional who specializes in tax issues?

No its not a specific medical condition, to be able to claim it as a tax free benefit you have to show it is the same as one of the benefits listed on HMRC's website as being non taxable.. Some are saying its the same as DLA/PIP and it is not.

The officer I have been working with is a HMRC tax specialist and employed by the government.

No its not a specific medical condition, to be able to claim it as a tax free benefit you have to show it is the same as one of the benefits listed on HMRC's website as being non taxable.. Some are saying its the same as DLA/PIP and it is not.

The officer I have been working with is a HMRC tax specialist and employed by the government.

Oh, okay, I follow you now.  I misinterpreted "qualifying conditions" to mean the medical conditions that a recipient has that made them eligible for the benefit.  But you meant the conditions that must be met to receive the various benefits.