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Quick Question Help if Possible?
- woodsie
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I know this is not normal area for MODS but do any members know; if when placed on contribution based ESA.
If you have been on invalidity ben/incapacity ben since before 1995 without a break will the HMRC tax credits now class ESA benefits as Taxable or ignore it for tax credit purposesas on IB.
Because if they dont there goes my first £216/month reduction in income.
I just thought someone on here must have been transfered to ESA with these circumstances already.
Thanks in advance for any help!
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- Gordon
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Contribution Based ESA is liable to tax, there is no disregard of this even if you are transferred from IB, where it is was not.Hi!
I know this is not normal area for MODS but do any members know; if when placed on contribution based ESA.
If you have been on invalidity ben/incapacity ben since before 1995 without a break will the HMRC tax credits now class ESA benefits as Taxable or ignore it for tax credit purposesas on IB.
Because if they dont there goes my first £216/month reduction in income.
I just thought someone on here must have been transfered to ESA with these circumstances already.
Thanks in advance for any help!
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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- woodsie
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Thanks for quick responce.
I do hope there is a disregard on IB as i have been claiming Tax credits with a disregard for IB since they first came in, because invalidity benefit was not taxed so HMRC didn't count my benefit for tax credit purposes; the same applied for incapacity benefit.
This was they said because i had a continuous claim without missing one day since before 1995.
If i or they are wrong i owe them thousands.
Ijust wanted to know if this rule still applied for ESA.
Thanks.
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- originaldave
Hi! Gordon.
Thanks for quick responce.
I do hope there is a disregard on IB as i have been claiming Tax credits with a disregard for IB since they first came in, because invalidity benefit was not taxed so HMRC didn't count my benefit for tax credit purposes; the same applied for incapacity benefit.
This was they said because i had a continuous claim without missing one day since before 1995.
If i or they are wrong i owe them thousands.
Ijust wanted to know if this rule still applied for ESA.
Thanks.
pre 95 IB not counted as income
www.hmrc.gov.uk/manuals/tctmanual/TCTM04403.htm
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- woodsie
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Thanks a lot Dave for finding this info; at least i know up till now i dont owe taxman .
Its whether they are going to carry on the disregard for income for tax credits for ESA as in my original post.
Thanks Again!!!
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