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RE TRANSFER FROM INCAPACITY TO ESA CONTRIBUTION

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3 years 5 months ago #252393 by tinytim
Hi i was transferred from incapacity benefit to esa Contribution in 2012 and i was wondering when i receive my state pension in 2023 if my money is slightly more will i have to pay tax as i have a superannuation pension which at this time i do not have to pay any tax and if i do in 2023 when on state pension will i be worse off.

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3 years 5 months ago #252429 by Gordon
tinytim

It's impossible for us to say what will happen in 2023 but with a little research on your part you should be able to get an idea of what you might receive.

So, when you reach State Retirement Age your ESA will stop so your taxable income will be your State Pension and whatever your superannuation pension pays assuming there is nothing else.

You can get a State Pension forecast from the following

www.gov.uk/check-state-pension

Everybody has a Personal Allowance, how much they can earn before they pay tax currently it is £12,500 so if your income is below the Allowance in 2023 you will not pay any tax and if it is more then you will pay tax on the excess, so as an example; if your total taxable income is £13,000 then you will pay £100 in tax (£13,000 - £12.500 = £500 x 20% Basic Tax - £100).

Gordon

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

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