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ESA Tax Mix-up
- bigcat
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10 years 6 months ago - 10 years 2 months ago #125678 by bigcat
ESA Tax Mix-up was created by bigcat
There is an article in the Northern Echo newspaper today (16.10.14) It can be seen on the newspapers website. It refers to contribution based ESA retired miners with a mineworkers pension who are being asked to pay back between £300 and £900 each for tax year 2013-2014. I am a retired Policeman with a Police Pension (injured on duty) and have been on ESA contribution based until May of this year when the 12 month limit was up.I have been asked to pay back £841 with what appears to be the same circumstances as the miners. It would appear there are going to be more in the same boat from different occupations with a pension dropping for this tax mix up. The miners are asking MP Grahame Morris(Easington) for help.
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- Gordon
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10 years 6 months ago #125680 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic ESA Tax Mix-up
Bigcat
I'm not sure it can be described as a mix up.
ESA(CB) is liable to tax (ESA(IR) is not). If a claimant has other taxable income which with their ESA(CB) takes them over their personal allowance then they pay tax on the excess. The DWP do not deduct tax from ESA(CB) so it is the responsibility of the claimant to inform HMRC so that they can adjust their Tax Code accordingly.
Gordon
I'm not sure it can be described as a mix up.
ESA(CB) is liable to tax (ESA(IR) is not). If a claimant has other taxable income which with their ESA(CB) takes them over their personal allowance then they pay tax on the excess. The DWP do not deduct tax from ESA(CB) so it is the responsibility of the claimant to inform HMRC so that they can adjust their Tax Code accordingly.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- bigcat
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10 years 6 months ago #125685 by bigcat
Replied by bigcat on topic ESA Tax Mix-up
I have used the term mix-up as that is how it is described by the newspaper (Northern Echo). The taxman has always been aware of me being on ESA contribution based and i have paperwork to back this up ie change of tax codes letters etc. The letter i received last Saturday states 'You may be unaware of this' too right I am. In my case I will say it is their error as i have been totally upfront with my tax letting them know of all changes which they acknowledge by reply letter (which i keep). I like others tell them whats what and naturally expect them to get it right but it looks like something has gone wrong. I am presuming the miners have done the same as me with their tax affairs if so something is def wrong at their end.
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10 years 6 months ago #125698 by bigcat
Replied by bigcat on topic ESA Tax Mix-up
I have been in touch with the office of MP Grahame Morris (Easington).The MP is to take up the matter with Ministers shortly with regards to the miners and my situation is noted by him.
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- teabag
10 years 6 months ago #125717 by teabag
Replied by teabag on topic ESA Tax Mix-up
There was information on the news and papers about the the Inland revenue making mistakes on peoples tax some had overpaid and some had underpaid
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- teabag
10 years 6 months ago #125719 by teabag
Replied by teabag on topic ESA Tax Mix-up
Forgot to say that they said it was down to computer error
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