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still confused!

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13 years 3 months ago #42781 by McGoggy
still confused! was created by McGoggy
Can anyone clarify for me whether the protection given to ib claimants pre 1995 has officially been scrapped for the migration to ESA? I mean the tax status & private pension disregard. Also regarding the current disregard figure of £85, does that figure increase yearly or stay the same? I know there has been a lot of speculation about the transitional protection but I wondered if anything has been decided officially. Thanks.

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13 years 3 months ago #42808 by Gordon
Replied by Gordon on topic Re:still confused!
elainegem

I guess until they actually start moving people, nothing if "official", however, it appears the intention is to move all IB claimants to Contribution Based ESA, which is liable to tax.

Income Related ESA is not taxable, but is subject to a means test.

As far as I am aware, the £85 pension disregard for ESA(CB) is not index linked.

Gordon

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

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  • originaldave
13 years 3 months ago #42836 by originaldave
Replied by originaldave on topic Re:still confused!
elainegem wrote:

Can anyone clarify for me whether the protection given to ib claimants pre 1995 has officially been scrapped for the migration to ESA? I mean the tax status & private pension disregard. Also regarding the current disregard figure of £85, does that figure increase yearly or stay the same? I know there has been a lot of speculation about the transitional protection but I wondered if anything has been decided officially. Thanks.


From the many posts on here and links supplied also reading all the other forums and news groups I have come to the conclusion that IMO the 95 tax free IB is a thing of the past, I get most of my IB withheld due to getting an alowance with my WP so as most my income is tax free not too bothered, the big problem will be that even if you get in support group once your income is taxable ... you will be treated differnt for Tax Credits and could well find you off paying tax on ESA and getting less childs tax credits :(

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  • The Thing
13 years 3 months ago #42847 by The Thing
Replied by The Thing on topic Re:still confused!
Your going to take a double whammy when you are transfered to ESA.

1.It will become taxable.

2.Your occupational pension will reduce it by half after the £85 disregard.

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13 years 3 months ago #42925 by McGoggy
Replied by McGoggy on topic Re:still confused!
I reiterate,has there been an official announcement or is it just speculation?

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  • Survivor
13 years 3 months ago #42926 by Survivor
Replied by Survivor on topic Re:still confused!
elainegem wrote:

I reiterate,has there been an official announcement or is it just speculation?

If you look again at Gordan's response, you will see that he says that nothing is official yet.

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