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ESA to State Pension
- Susie
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5 days 22 hours ago #303406 by Susie
ESA to State Pension was created by Susie
Hi everyone! My husband has been in receipt of old style income related ESA for many years without change. He has just started receiving his State Pension this month (weekly) and today received a letter from Job Centre Plus (ESA) stating 'we are writing to tell you that the contributory element of ESA can count as taxable income. For the period _April 2025 in the 2025/26 tax year we paid a total allowance of £413.31, of which £260.02 was taxable. This is added to any earnings for this tax year. I AM CONFUSED!
Am I correct in thnking that as he has always received income related ESA, there should be no taxable amount added for the period prior to retirement in this tax year?
With many thanks for any help!
Am I correct in thnking that as he has always received income related ESA, there should be no taxable amount added for the period prior to retirement in this tax year?
With many thanks for any help!
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- David
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4 days 6 hours ago #303447 by David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by David on topic ESA to State Pension
Hi Susie
It would be a good idea if both you and your husband created an online account with the HMRC. It can supply you with so much useful information about tax and also NI contributions record.
David
It would be a good idea if both you and your husband created an online account with the HMRC. It can supply you with so much useful information about tax and also NI contributions record.
David
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- Kab
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4 days 3 hours ago #303463 by Kab
Hi Susie, Has husband been getting P60U every year since moving from what was ICB and IS ?
when ESA came about they merged ICB and IS - so therefore he had a CB ESA claim (formerly ICB) topped up with IR ESA (formerly IS)
As he is now in receipt of SP which is taxable this triggers the letter you received.
His final ESA payment of £413.31 is made up of both elements CB and IR the CB part for this tax year is £260.02 which will be included in the SP annual amount for tax purposes.
Nothing is ever simple or straightforward but I hope it helps clarify this particular letter for you.
As David suggests check in with HMRC.
Replied by Kab on topic ESA to State Pension
Hi everyone! My husband has been in receipt of old style income related ESA for many years without change. He has just started receiving his State Pension this month (weekly) and today received a letter from Job Centre Plus (ESA) stating 'we are writing to tell you that the contributory element of ESA can count as taxable income. For the period _April 2025 in the 2025/26 tax year we paid a total allowance of £413.31, of which £260.02 was taxable. This is added to any earnings for this tax year. I AM CONFUSED! Am I correct in thnking that as he has always received income related ESA, there should be no taxable amount added for the period prior to retirement in this tax year? With many thanks for any help!
Hi Susie, Has husband been getting P60U every year since moving from what was ICB and IS ?
when ESA came about they merged ICB and IS - so therefore he had a CB ESA claim (formerly ICB) topped up with IR ESA (formerly IS)
As he is now in receipt of SP which is taxable this triggers the letter you received.
His final ESA payment of £413.31 is made up of both elements CB and IR the CB part for this tax year is £260.02 which will be included in the SP annual amount for tax purposes.
Nothing is ever simple or straightforward but I hope it helps clarify this particular letter for you.
As David suggests check in with HMRC.
The following user(s) said Thank You: Susie, David
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