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is Esa taxable
- Rees
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9 years 6 months ago #125460 by Rees
is Esa taxable was created by Rees
Hi I was on the old Invalidity benefit that was not taxable, I was swapped over to Incapacity benefit as this was also not taxable, I then had a WCA to change to ESA and was found fit for work. After a tirbunal I was placed in the WRAG and this was taxable, I have now been placed in the SG after a reconsideration that took 9 months and has now received a letter telling me this is taxable/ I thought the SG group was not taxable,only the WRAG . I rang the DWP and they said all contribution ESA is taxable. I am wondering should my Esa be n on taxable as I have been on this type of benefit since before 1995.The person I spoke to today from the DWP didn't know what Invalidity benefit was, he said it was before his time. Any advice would be helpful. Thanks.
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- Gordon
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9 years 6 months ago #125463 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic is Esa taxable
Rees
It is important to realise that ESA is a separate benefit from Invalidity and Incapacity Benefit, it does not matter how they dealt with tax previously, as you are now on ESA it only matters how it is liable to tax.
Unusually the DWP person was correct, Contribution Based ESA is liable to tax (Income Related is not), the group you are in does not change the liability as you have been receiving ESA(CB) in the WRAG and now in the Support Group.
Whether you are actually required to pay tax will be dependant on your circumstances and whether you have any other taxable income. You need to contact HMRC to let them know that you are now receiving ESA(CB).
Gordon
It is important to realise that ESA is a separate benefit from Invalidity and Incapacity Benefit, it does not matter how they dealt with tax previously, as you are now on ESA it only matters how it is liable to tax.
Unusually the DWP person was correct, Contribution Based ESA is liable to tax (Income Related is not), the group you are in does not change the liability as you have been receiving ESA(CB) in the WRAG and now in the Support Group.
Whether you are actually required to pay tax will be dependant on your circumstances and whether you have any other taxable income. You need to contact HMRC to let them know that you are now receiving ESA(CB).
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Rees
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9 years 6 months ago #125464 by Rees
Replied by Rees on topic is Esa taxable
Thank you for your information. I shall notify them.
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- neptuno
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9 years 6 months ago #125469 by neptuno
Replied by neptuno on topic is Esa taxable
Should everyone receiving CB ESA be contacting HMRC ?
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- slugsta
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9 years 6 months ago #125470 by slugsta
I believe so, unless you are already completing a tax return.
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Replied by slugsta on topic is Esa taxable
neptuno wrote: Should everyone receiving CB ESA be contacting HMRC ?
I believe so, unless you are already completing a tax return.
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- Rees
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9 years 6 months ago #125473 by Rees
Replied by Rees on topic is Esa taxable
I thought that if you had been on a benefit and it changed like I went from invalidity to incapacity and even though incapacity was taxable mine wasn't because I had been transferred from one to the other, so I thought that this would be the same going from incapacity to ESA as i am not a new claim, but just being transferred again.
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