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Is ESA taxable?
- emmandelo
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13 years 8 months ago #51662 by emmandelo
Is ESA taxable? was created by emmandelo
Good morning all.I'm in receipt of Contribution and Income based ESA, in the support group. I've just started drawing a small personal pension that I've got early due to ill health. got a letter today from the Inland Revenue to check my tax code as I'm no longer working. On the form it asks for details of any taxable ESA. I thought ESA was not taxable but it appears I may be wrong. Any help please?
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- Survivor
13 years 8 months ago #51663 by Survivor
Replied by Survivor on topic Re: Is ESA taxable?
Contributions-based ESA is taxable, Income-related ESA isn't.
Don't forget to declare your pension to the DWP.
Don't forget to declare your pension to the DWP.
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- emmandelo
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13 years 8 months ago #51664 by emmandelo
Replied by emmandelo on topic Re:Is ESA taxable?
Thanks survivor. so now I'm confused! As I get contribution and income based ESA how do I know how much of that amount is taxable?
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- Survivor
13 years 8 months ago #51667 by Survivor
Replied by Survivor on topic Re:Is ESA taxable?
I assume you get ESA(IR) because you get premiums. (Enhanced and/or severe disability premiums.) These are extra money you get because you're on DLA, and are income-related. The support/WRAG component will be part of the ESA(CB).
If you can't find the letter they sent you when they awarded the ESA breaking it down into components, then phone and ask them to send you a letter telling you what's what.
If you can't find the letter they sent you when they awarded the ESA breaking it down into components, then phone and ask them to send you a letter telling you what's what.
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- emmandelo
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13 years 8 months ago #51669 by emmandelo
Replied by emmandelo on topic Re:Is ESA taxable?
Thanks, I've got the award letter but don't understand it completely. I'm not getting DLA at the moment (but have submitted a claim with the help of this wonderful site). I think I'll just photocopy the award letter and send it back to the IR and they can work it out.
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- waltwhitman
13 years 8 months ago #51769 by waltwhitman
Replied by waltwhitman on topic Re:Is ESA taxable?
Cracking system isn't it! Go to work, pay tax, NI and pension contributions, get very sick, go through the ATOS nightmare, get your benefits, get your pension and hey presto = pay tax because you've got a pension and find out that you'll lose a giant chunk of the benefit as well. So much for being responsible and trying to plan for your retirement.
Walt
Walt
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