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9 years 11 months ago - 9 years 11 months ago #120875 by roger55
esa payments was created by roger55
Sorry to request help on something that may have been discussed before, my plea for help is in response to a recent post by Badders, for two and a half years I have been in receipt of cb based esa in the support group, I receive full care and mobility dla, I have a work pension of £719, widow pension of £53 and another work pension of £147 all three are monthly figures after income tax.
I was totally ignorant of the benefit system and with your help managed to fumble through what I thought successfully, on receiving esa I thought I was entitled to free prescriptions, glasses dental treatment ect and showed my esa letter to chemist , dentist optician all who noted number. After my second dental app I received a letter from an agency that they could not find my esa number on phoning them and talking to them I was told I had to pay for all above treatments, shocked. Then reading Badders item I may have to pay more back.
More though what I receive in cb esa approx.£5500 annually I pay exactly the same amount in income tax to dwp, when I queried the dwp voice on the phone looked at the computer said I didn't pay tax after phoning tax office for amonth for reply said I did!!!!! contact dwp for why!!!!, brain give way. Help I am in my mid 50`s.
Last edit: 9 years 11 months ago by . Reason: Tick.

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9 years 11 months ago #120879 by Gordon
Replied by Gordon on topic esa payments
Roger

Only an Income Related benefit such as ESA(IR) entitles a claimant to free prescriptions, dental treatment, etc., your ESA(CB) does not and based on your income figures I would not expect you to be entitled to an ESA(IR) top or an exemption certificate due to low income.

You can get a Prescription Pre Payment certificate that can reduce the cost of prescriptions.

www.nhsbsa.nhs.uk/1127.aspx

As to Income Tax, ESA(CB) is liable to tax, you need to contact HMRC to notify them that you are receiving ESA(CB) and ask for a revised Tax Code, the DWP do not collect the Tax due on your ESA(CB) so it will be done through your other income. If they have not previously been collecting the tax on your ESA(CB) there will likely be an underpayment of tax, if I remember rightly, depending on the amount owed, this can either be collected as a one off payment or through a temporarily increase tax payments.

Gordon

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9 years 11 months ago #120884 by slugsta
Replied by slugsta on topic esa payments
Hi roger,

I have to ask whether DWP are aware of your private pension? Although you are on contributory ESA, this amount can be reduced for claimants who recieve more than £85 per week pension :( . If you have not already informed DWP of this you should do so as soon as possible in order to reduce potential overpayments.

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9 years 11 months ago - 9 years 11 months ago #120890 by roger55
Replied by roger55 on topic esa payments
Hi Gordon, Mrs H thank you for the responses though I am still uncertain! sorry my post was hurried and I have Parkinson`s which makes it difficult to type.
I received letters from hmrc in March stating where my tax allowance was going of which over £5000 of this allowance or exactly what I get in esa allowance was going to the Dwp, therefore in a context I don't get esa? , this was the same previous tax year.
When I phoned the DWP they said I don't pay tax I phoned HMRC they said I did!?. Dwp are aware of my pensions as informed when I first claimed, they have never taken or reduced my esa payments I was unaware of this until I saw message on Badders topic?.
I have requested i think its called H C 3 for prescriptions for which I do not have to pay which has been passed
thank you for your time again
Last edit: 9 years 11 months ago by Gordon.

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9 years 11 months ago #120893 by Gordon
Replied by Gordon on topic esa payments
Roger

I think you may misunderstood the information you have had from HMRC :)

Basically they add up all of your taxable income, this would include your pensions and your ESA(CB), then they deduct your Personal Allowance and then you pay tax on the remaining amount (if any) at the appropriate rate.

I would expect you to only lose 20% of your ESA in tax and at most 40%.

Your pension is only disregarded under ESA if you were previously receiving Incapacity Benefit and your pension was disregarded under IB, if you made a new claim for ESA or were transferred from IB and your pension was not disregarded under IB then it will not be under ESA.

Gordon

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9 years 11 months ago #120897 by gillyk59
Replied by gillyk59 on topic esa payments
Hello Roger55,

I receive an occupational pension and although I declared it at the start of my ESA claim, it took them a long time to sort out the deduction which resulted in a £6000 overpayment of CB ESA which is being deducted from my current payment at the rate of £18.99 per week. The income tax for the ESA and my occupational pension is calculated by HMRC and deducted from my occupational pension through my tax code (total tax due on ESA and Occupational Pension is deducted). It sounds like you are in a similar position so the tax code you receive from HMRC reflects all of your income from all sources and the tax thats due on all your income.

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