DWP and HMRC - a warning

Hello all;
Last December I was transferred from IB to ESA Support - many thanks to this forum for advice and support.
However, when I received my award letter, it said that HMRC would be advised of the transfer since my award was now taxable; it had previously been untaxed due to running since 1992.
I receive a works pension and expected my tax code to be altered, (previously well below threshold) however nothing happened by the end of April so I contacted HMRC - they knew nothing about it!
So we sorted the figures out and I have a large liability to repay over the next 12 months - if I hadn't told them and they chased me it would have been instant repayment and a fine on top!
So, please, please, don't let this slide - tell HMRC yourself, don't trust DWP.
Regards, and good luck to you all,
Hopi

Hopi wrote: Hello all;
Last December I was transferred from IB to ESA Support - many thanks to this forum for advice and support.
However, when I received my award letter, it said that HMRC would be advised of the transfer since my award was now taxable; it had previously been untaxed due to running since 1992.
I receive a works pension and expected my tax code to be altered, (previously well below threshold) however nothing happened by the end of April so I contacted HMRC - they knew nothing about it!
So we sorted the figures out and I have a large liability to repay over the next 12 months - if I hadn't told them and they chased me it would have been instant repayment and a fine on top!
So, please, please, don't let this slide - tell HMRC yourself, don't trust DWP.
Regards, and good luck to you all,
Hopi

Hi H.

Yes, ESA is taxable, even if previously tax exempt on IB.

It's mentioned in this FAQ :

My IB was tax exempt; will it still be under ESA?

From our : IB, IS, SDA, Migration to ESA FAQ’s

Thanks for posting, anyway.

bro58

I was sent a large bill a couple of years back due to the fact that HMRC had not realised that I had been getting a works pension and receiving IB. I explained that I was unable to pay it off all at once and was allowed to pay it over 3 years. I now have to complete self assessment tax returns each year

Hi,

I believe that Income Related ESA is not taxable but that Contribution Based is.

Did you check which you are receiving?