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11 years 10 months ago - 11 years 10 months ago #108867 by Bloodline
Tax was created by Bloodline
One of my client has been on Invalidity benefit since 1991 then changed to Incapacity benefit now on ESA contribution based, never had to pay tax. Now received a tax bill for £900 for 2012/2013 for the ESA from August 2012. Is this correct? Their ESA is being stopped from next week due to the 365 day rule even though they scored 15 points on the ATOS medical and they have another operation on both wrists due on the 31st August. I have appealed this decision last September but have not yet got appeal date. Any help you could give would be good
Last edit: 11 years 10 months ago by Gordon.
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11 years 10 months ago - 11 years 10 months ago #108871 by Gordon
Some IB payments were tax exempt, unfortunately this is not the case under ESA, where Contribution Based ESA is liable to tax.
Your client needs to contact HMRC to have their tax code changed, I assume that they have additional income which has used up their tax free allowance, the DWP do not deduct tax, so HMRC will increase the tax paid on the other income to cover the ESA(CB).
Gordon
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Replied by Gordon on topic Tax
Shelagh Linde wrote: One of my client has been on Invalidity benefit since 1991 then changed to Incapacity benefit now on ESA contribution based, never had to pay tax. Now received a tax bill for £900 for 2012/2013 for the ESA from August 2012. Is this correct? Their ESA is being stopped from next week due to the 365 day rule even though they scored 15 points on the ATOS medical and they have another operation on both wrists due on the 31st August. I have appealed this decision last September but have not yet got appeal date. Any help you could give would be good
Some IB payments were tax exempt, unfortunately this is not the case under ESA, where Contribution Based ESA is liable to tax.
Your client needs to contact HMRC to have their tax code changed, I assume that they have additional income which has used up their tax free allowance, the DWP do not deduct tax, so HMRC will increase the tax paid on the other income to cover the ESA(CB).
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Last edit: 11 years 10 months ago by Gordon.
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