I receive contribution based ESA. Also, as I am 60 my company pension is available to me. I read that pension amount below £85.00 is disregarded. I don't think I would pay any tax on my pension because it is below the personal allowance which I think is about £11.000. Is that figure of £85.00 before tax or after tax? Am I right in thinking DLA and contribution ESA are not subject to income tax?
ESA(CB) is and will count against your Personal Allowance, so if the total of your pension and ESA(CB) exceed this then you will have to pay tax on the excess, which will be deducted from your pension.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
