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Esa and other income

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9 years 9 months ago #123269 by Be be
Esa and other income was created by Be be
Hi I care for my severley disabled wife who has multiple sclerosis she has been unable to work since 1997 and since 1998 has been claiming incapacity benefit, and a health insurance taken out by her employer which pays a percentage of her salary minus ic while she remains an employee albeit in name only this is paid in its gross form monthly and we are responsible for paying the tax through the self assessment process. She also receives a small pension from a previous employer where tax is paid at source. Under incapacity benefit neither of these incomes were taken into account. My wife migrated to esa in November last year and we asked the lady who phoned if other income would be affected and she said no as my wife was put in the cb support group.
My question is this I know dwp are aware of the pension from the paye code but we never had to mention the insurance as it was never looked at by ic and we were asked no financial questions on the esa questionaire as we self assess to pay the tax on this I doubt they know about it but both incomes were disregarded by ic and as my wife was in reciept of ic prior to April 2001 and is in the highest rate of care for dla should as I understand it be disregarded for esa can anybody confirm I'm right on this . Thanks

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9 years 9 months ago #123279 by Gordon
Replied by Gordon on topic Esa and other income
Bernadette

If your wife's pension payments were disregarded under IB then they will continue to be under ESA as long at the claim is maintained, being in receipt of DLA Higher Rate Care would have been a reason the payments were disregarded under IB.

I do not think you can assume that the DWP are aware of the payments, her PAYE code is produced by HMRC and all that the DWP would have done is inform them that she is receiving Contribution Based ESA which is liable to tax, the DWP make no deductions for tax from benefits.

We have regularly heard from claimants who have been transferred from IB to ESA in similar circumstances that the DWP have no records of any pension payments made while receiving IB and in some cases this has caused problems when the DWP become aware of them when the claimant is receiving ESA.

At the very least I would suggest you check back through your records to see if you have ever informed the DWP of these payments and when, at least you will then be covered should the matter be raised.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
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