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Contributory element of ESA and taxation

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13 years 2 months ago #68177 by bubs
HI all, I wonder if anyone can help? I have been put into support after appeal. I have just recieved a letter fron Belfast about taxable allowances. The letter says that because they has been a change in my allowance(support Group)paid to me, Tax year 2010/11 has a differance of £101.40. I can write saying reason why I think this is wrong. Can anyone tell me what this is all about in simple terms? I am in the Contribution base ESA and recieve DLA, LRC
and HRM and live on my own. many thanks.

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13 years 2 months ago #68178 by Gordon
Replied by Gordon on topic Re:Contributory element of ESA and taxation
bubs wrote:

HI all, I wonder if anyone can help? I have been put into support after appeal. I have just recieved a letter fron Belfast about taxable allowances. The letter says that because they has been a change in my allowance(support Group)paid to me, Tax year 2010/11 has a differance of £101.40. I can write saying reason why I think this is wrong. Can anyone tell me what this is all about in simple terms? I am in the Contribution base ESA and recieve DLA, LRC
and HRM and live on my own. many thanks.

ESA(CB) is liable to tax.

Because you have been moved into the Support Group from the WRAG, there has been an increase in your payments, and therefore the associated tax liability.

Whether any tax is owed will depend on your personal circumstances.

Hope this explains it.

Gordon

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

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13 years 2 months ago #68183 by bubs
Hi, thanks Gordon, should I write explaining my circumstances and see what happens.

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13 years 2 months ago #68184 by Gordon
Replied by Gordon on topic Re:Contributory element of ESA and taxation
bubs wrote:

Hi, thanks Gordon, should I write explaining my circumstances and see what happens.

Sorry if I wasn't clear, by "personal circumstances" I meant any other taxable income you might have.

Whether tax is owed will depend on whether you have exceeded your Personal Tax Allowance for that Tax Year.

Gordon

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

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13 years 2 months ago #68190 by bubs
Thanks Gordon you have helped me get my brain around it. Bubs x

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