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DWP if back pay award and implications for tax.

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5 years 2 months ago #224588 by apples6
Dear B&W

Re the I.C to ESA "mis-administration" from DWP that went on historically for some from around 2012
with the change over of benefits.

Would you please know what the scenario would be if someone does finally get award back pay which I have seen could be possibly some thousands of pounds, as the matter has gone unnoticed for some years:

1.Would the person if say they were getting £8000 pa in another benefits eg state pension then got eg £7000 back award which would for a single person be £15000.00 income in one year have to pay tax as they would be over the tax threshold, and how would it be calculated on the total income or how? thank you

2. is there any link to detailed information on such type of situations? To be able to work it out depending on various scenarios of amounts? thank you again


Many thanks Apples6

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5 years 2 months ago #224608 by Gordon
Apples

The back payment is for Income Related ESA which is not liable to tax so there will be no additional tax to pay.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: apples6

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5 years 2 months ago #224648 by apples6
Many thanks

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