- Posts: 21
silver lining wrote: I received the dreaded brown envelope yesterday...but good news thanks to your brilliant advice ...i have been put in the support group on contributory esa...i believe this is taxable...please can you tell me is dla and carers allowance taken into consideration as taxable income ...many thanks
That is Good News !!!
Thanks for returning to let us know.
CB ESA is taxable income, however to pay Income Tax, your TOTAL taxable income would have to exceed your Personal Allowance, which is currently circa £200/Week.
e.g. If you were also in receipt of an Occupational Pension (OP), this would also be classed as taxable income, and added to your CB ESA income. (much the same as if you had two jobs)
DLA is not classed as taxable income.
Carer Allowance (CA) is classed as taxable income :
If it is you that is currently in receipt of CA, then you cannot receive CB ESA and CA, they are what are classed as "overlapping benefits".
However, if you are entitled to IR ESA/Top-ups, you may be entitled to The Carer Premium, further, as you are now in The SG, you may also be entitled to The Enhanced Disability Premium (EDP) as an IR ESA top-up.
If you are in receipt of Middle or Higher Rate Care Component of DLA, you may also have entitlement to The Severe Disability Premium. (SDP)
See : ESA Premiums
To be entitled to payment of any of the above premiums on top of your CB ESA, you must also be entitled to IR ESA, in that you pass the means test with respect to capital, assets, savings, household income and any hours worked by a partner if you have one :
Asset rule for ESA(IR)
24 hour work rule for ESA(IR)
Have a look at : This Post and : This Post.
See also : Here.
If it is you that currently receives CA for providing at least 35 hours/week care for someone else you should inform The DWP in writing ASAP :
Sending Documents to the DWP or ATOS
Someone else can receive CA for providing care for you, but if they do, this is one of the scenarios that would exclude you from receipt of The SDP.
You don't say how long the recommended period (prognosis) before reassessment of your SG award is, for further information Re : this, see : Here.
Please respond to this post if you have any further queries.
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Nothing on this board constitutes legal advice - always consult a professional about specific problems