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Quick Question Help if Possible?

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13 years 4 months ago #63221 by woodsie
Quick Question Help if Possible? was created by woodsie
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!

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13 years 4 months ago #63223 by Gordon
Replied by Gordon on topic Re:Quick Question Help if Possible?
matchseller wrote:

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!

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.

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems

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13 years 4 months ago #63262 by woodsie
Replied by woodsie on topic Re:Quick Question Help if Possible?
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.

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  • originaldave
13 years 4 months ago #63277 by originaldave
Replied by originaldave on topic Re:Quick Question Help if Possible?
matchseller wrote:

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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13 years 4 months ago #63283 by woodsie
Replied by woodsie on topic Re:Quick Question Help if Possible?
Hi!
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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