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esa and private pension 7 years 6 months ago #98245

Hi

am totally confused, my sister who has mental health issues is in receipt of esa in the support group,
not sure if it is contributory or income based will phone tomorrow to find out, received a letter this morning saying that her private pension of£206 a month will be taxed by £14,
Phoned the hmrc, who asked me if she was recceiving contributory or income based esa, was not sure so told them it was contributory, and i was told in that case she should be paying more is this correct

would be grateful for any help with this

Have to say a big THANK YOU for all your help in the past, a truly great site :)
The following user(s) said Thank You: jig

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Last edit: by Gordon.

esa and private pension 7 years 6 months ago #98249

scruffs wrote: Hi

am totally confused, my sister who has mental health issues is in receipt of esa in the support group,
not sure if it is contributory or income based will phone tomorrow to find out, received a letter this morning saying that her private pension of£206 a month will be taxed by £14,
Phoned the hmrc, who asked me if she was recceiving contributory or income based esa, was not sure so told them it was contributory, and i was told in that case she should be paying more is this correct

would be grateful for any help with this

Have to say a big THANK YOU for all your help in the past, a truly great site :)


Contribution Based ESA (not Income Related ESA), is liable to tax, I assume what has happened is that the combination of her ESA(CB) and her pension have exceeded her personal allowance and as a result some of her pension is now being deducted as tax.

It is worth checking her tax code is correct and she is not on an emergency one as this may result in too much being deducted, it also worth checking at the end of each finnancial year what her annual tax liability should be in case she can calim a refund.

Gordon

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

esa and private pension 7 years 6 months ago #98250

Thank you for your reply Gordon really appreciated,

When I phone tomorrow should I be told that she is on income based esa, is the outcome the same as being on contributory esa

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Last edit: by Gordon.

esa and private pension 7 years 6 months ago #98254

scruffs wrote: Thank you for your reply Gordon really appreciated,

When I phone tomorrow should I be told that she is on income based esa, is the outcome the same as being on contributory esa


No, Income Related ESA is not liable to tax.

Gordon
The following user(s) said Thank You: scruffs

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

esa and private pension 7 years 6 months ago #98257

Thanks again Gordon :)

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