× Members

ESA income related

More
6 years 5 months ago #199619 by trainingisgood
ESA income related was created by trainingisgood
I would very grateful if you are able to help me determine where I am on Income related esa (I assume I was up until now). My husband was jointly on my claim as I am unwell and was unable to find any employment. He now receives his state pension and my ESA has been cut in half. Our mortgage is still being paid by the DWP. The reason I am asking is I thought ESA income related was not taxable. I contacted HMRC who said I had been taxed for the last year. I have looked at Form P60U which show reference as ESA500 for year 6 April 2017 which show taxable benefit of £5699. and tax code of 1100LX. The form also shows tax deducted 0, tax refunded ) and net tax deducted 0. I have on this benefit for approx 6 years. I apologise if I am confusing you. HMRC say I have a tax code BRX (DWP).

Kind regards
Ann

Please Log in or Create an account to join the conversation.

More
6 years 5 months ago #199627 by Gordon
Replied by Gordon on topic ESA income related
trainingisgood

If your husband is part of your claim and you are receiving mortgage support then you must be receiving ESA(IR), however, it sounds like you are receiving it as a top up to an ESA(CB) payment and this is why you have received the HMRC notice.

Gordon

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

Please Log in or Create an account to join the conversation.

More
6 years 5 months ago #199657 by trainingisgood
Replied by trainingisgood on topic ESA income related
Many thanks Gordon. Can I just ask, would the dwp have cut my ESA in half because my husband now receives his pension? I have not paid contributions for at least 6 years so would the CB ESA not apply to me now? Is there any way of finding out more about my benefit other than contacting by phone or letter which always makes me have a panic attack. My husband was always on my claim and when we filled in his pension form I informed them of my ESA. I had a couple of workplace pension come through this year and I took approximately £7000. The HMRC say my code is what I said in the last email because I told them I was ESA income related. They said I had an allowance of £11500 but that i have been paying tax on the ESA in previous years. So as it stands the taxable amount on the ESA on the previous email would that amount be deducted from my personal allowance. I am so sorry to go on, but what happens if you go over your personal allowance and how does it affect ESA and the DWP. Do the DWP and HMRC communicate and liaise in these matters. I am concerned because I think the amount that I took from the pension pay out may affect my ESA. Gordon please only reply when you have time.

Kind regards
Ann

Please Log in or Create an account to join the conversation.

More
6 years 5 months ago #199660 by Gordon
Replied by Gordon on topic ESA income related
trainingisgood

Your husbands pension will be treated as income for your ESA(IR) and deducted £ for £.

If you took your own pension as a lump sum then it would have taken you over the £6000 limit for assets and savings. Did you report this to the DWP?

Although ESA(CB) is liable to tax you will not pay any tax unless you exceed your personal allowance, your post suggests that this has not happened. The DWP do not deduct tax from any benefits, it would be taken from any other income that you have.

It really sounds like you need to get face to face advice about your finances.

Gordon

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

Please Log in or Create an account to join the conversation.

More
6 years 5 months ago #199663 by trainingisgood
Replied by trainingisgood on topic ESA income related
Many thanks again Gordon. I did inform the DWP about the pension and the adviser said you can have up to £6000. I will try and clarify with face to face. The amount I had paid to me was under the £6000 limit but I received tax rebate which took me over the limit. Thank you once again for your help. It it so complicated and even speaking with HMRC he has given me tax code of BRX DWP which means nothing to me because I said i was ESA Income related. Which ESA should have said I was to HMRC classed as. Thanks again Gordon.
The following user(s) said Thank You: ambofoster

Please Log in or Create an account to join the conversation.

More
6 years 5 months ago #199665 by Gordon
Replied by Gordon on topic ESA income related
trainingisgood

A BR Tax code means that you are paying tax on any taxable income and have no personal allowance, I would definitely speak to someone about this as you will get a tax bill in April next year on this basis for at least your ESA(CB).

Gordon

Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: trainingisgood

Please Log in or Create an account to join the conversation.

Moderators: GordonGaryBISCatherineWendyKellygreekqueenpeterKatherineSuper UserjimmckChris
We use cookies

We use cookies on our website. Some of them are essential for the operation of the site, while others help us to improve this site and the user experience (tracking cookies). You can decide for yourself whether you want to allow cookies or not. Please note that if you reject them, you may not be able to use all the functionalities of the site.