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ESA and Income Tax

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12 years 2 months ago #81277 by princess1
ESA and Income Tax was created by princess1
Hi, just received a £471. 02p underpaid
tax bill from HMRC for 2010/11 telling me I have 2 jobs one of which is ESA . I called and discussed the issue to be told that ESA is classed as a taxable income?????
Autum 2010 went from work sickness benefit
to ESA through the DWP. No other correspondence received. The claim was processed via telephone. The tax person was really understanding and agreed the DWP
appear at fault. Do I need to pay this ? What about 2011/2012? Does everyone on ESA receive an underpaid tax request like me? Thks for any help I am so confused.

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12 years 2 months ago #81285 by Gordon
Replied by Gordon on topic Re:ESA and Income Tax
princess

Contribution Based ESA is liable to tax, Income Related ESA is not.

The first thing I would suggest you do is find out whether you actually owe the tax.

If you do then you should pay it as I don't believe that any account is taken (regarding Income Tax), as to who's fault the error is.

Although the amount is relatively small, you may want to get face to face advice. See

Where to get advice?

Gordon

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

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