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ESA & Tax (Guilty before proven innocencet)

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6 years 6 months ago #196385 by Confidential
ESA & Tax (Guilty before proven innocencet) was created by Confidential
Hello
I thought I would share this with you all.

I have recently applied for ESA on behalf of my husband.
We received a letter just before we received the ESA 50 document to complete informing that he would not be entitled to the Benifit Payment as his Pension cancelled out any Benifit Payment.

I Still completed ESA50 document so that he could be assessed for NI Contributions Credit.

Husband has now received a HMR&C letter informing a change in Tax Code. He has now been taxed an extra £500 this month on his pension.

I have spoken to HMR&C who informed me that the increase tax was because we had applied for ESA. They said a letter is automatically sent to them when someone applies for ESA so they can Tax accordingly.

So they start taxing you even before DWP have approved the Benifit to you, It's like being found guilty before proven innocent. Which is rather naughty!

Informed HMR&C that the Benifit Payment had not been approved nor will it due to husbands Pension income.

I'm unsure if he will be taxed if NI Contributions Credit is approved.
It had better not be more than £740 a year as that is what I told it would cost if my husband payed voluntary over the year.
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