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How can I tell if I am on IR-ESA or CB-ESA?
- LittleC
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2 years 11 months ago #268566 by LittleC
How can I tell if I am on IR-ESA or CB-ESA? was created by LittleC
Hi there,
I have had trouble establishing whether I am receiving IR-ESA or CB-ESA, or a combination. Please can you help me work it out. It's important to know, as it has implications on the rules.
I have been receiving ESA since 2017 or 2018 (can't quite remember) so it's definitely not New Style.
In 2018 I got letters from DWP re overpayment and I got two letters - one saying overpayment of ESA(IR) and one saying overpayment of ESA (C) so I was obviously on a combination then? Would that remain the same until now, if I have not been reassessed?
I am in the Support Group (have been since my original assessment).
I recently received a simple tax calculation for 2020-2021 which said I had gone over the tax free allowance (between ESA and my permitted work income).
I read on this forum that ESA(IR) is not liable to tax, it is Contribution Based ESA that is taxable. Is that correct?
This was the breakdown:
ESA income 5920.28 (this works out as £113.84 p/w)
Permitted work 6925.56
Does this give any clues? Though TBH when I logged into my tax account it said I had nothing to pay so that wasn't conclusive!! (I paid anyway just in case but have no idea if I was suppposed to).
I'm trying to establish the rules around my savings (how much I can have) and occupational pension (does this count towards savings limit, if any) based on which type of ESA I'm receiving.
I find this all so confusing. I've done a lot of research but can't find the answers.
Thanks so much for your help.
Chloe
I have had trouble establishing whether I am receiving IR-ESA or CB-ESA, or a combination. Please can you help me work it out. It's important to know, as it has implications on the rules.
I have been receiving ESA since 2017 or 2018 (can't quite remember) so it's definitely not New Style.
In 2018 I got letters from DWP re overpayment and I got two letters - one saying overpayment of ESA(IR) and one saying overpayment of ESA (C) so I was obviously on a combination then? Would that remain the same until now, if I have not been reassessed?
I am in the Support Group (have been since my original assessment).
I recently received a simple tax calculation for 2020-2021 which said I had gone over the tax free allowance (between ESA and my permitted work income).
I read on this forum that ESA(IR) is not liable to tax, it is Contribution Based ESA that is taxable. Is that correct?
This was the breakdown:
ESA income 5920.28 (this works out as £113.84 p/w)
Permitted work 6925.56
Does this give any clues? Though TBH when I logged into my tax account it said I had nothing to pay so that wasn't conclusive!! (I paid anyway just in case but have no idea if I was suppposed to).
I'm trying to establish the rules around my savings (how much I can have) and occupational pension (does this count towards savings limit, if any) based on which type of ESA I'm receiving.
I find this all so confusing. I've done a lot of research but can't find the answers.
Thanks so much for your help.
Chloe
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- Gary
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2 years 11 months ago #268591 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic How can I tell if I am on IR-ESA or CB-ESA?
Hi LittleChloe
Have a look at your ESA breakdown letter, the breakdown is usually on page 3, It will give you your basic amount, if over 25 main phase £74.70, support component £39.40 if you get any disability premiums then you are in the IR ESA as no disability premiums paid in the CB ESA group.
You could be in both, CB ESA with a top up of IR ESA, it will tell you on your award letter , failing that contact ESA and ask.
Savings only take effect if you are in receipt of a means tested benefit.
Most means-tested benefits are only paid to people with less than £16,000 in savings (tax credits and the guarantee element of Pension Credit are not affected by this rule).
If you (and your partner) are under Pension Credit age and have total capital over £6,000 then the government assumes you receive £1 per week for every £250 of capital you have above £6,000.
If you are over Pension Credit age the government assumes you receive £1 per week for every £500 of capital you have above £10,000.
Occupation pension does not count towards savings limit. The assumed income rule does not apply to capital held as an annuity or in trust.
Gary
Have a look at your ESA breakdown letter, the breakdown is usually on page 3, It will give you your basic amount, if over 25 main phase £74.70, support component £39.40 if you get any disability premiums then you are in the IR ESA as no disability premiums paid in the CB ESA group.
You could be in both, CB ESA with a top up of IR ESA, it will tell you on your award letter , failing that contact ESA and ask.
Savings only take effect if you are in receipt of a means tested benefit.
Most means-tested benefits are only paid to people with less than £16,000 in savings (tax credits and the guarantee element of Pension Credit are not affected by this rule).
If you (and your partner) are under Pension Credit age and have total capital over £6,000 then the government assumes you receive £1 per week for every £250 of capital you have above £6,000.
If you are over Pension Credit age the government assumes you receive £1 per week for every £500 of capital you have above £10,000.
Occupation pension does not count towards savings limit. The assumed income rule does not apply to capital held as an annuity or in trust.
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: TheHud, LittleC
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- Angel
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2 years 11 months ago #268609 by Angel
Replied by Angel on topic How can I tell if I am on IR-ESA or CB-ESA?
Your Personal tax allowance is the same as for everyone £12570 [2021/22]. You will need to wait until you get a P60 from the DWP and a P60 from your employer to see what (if any) tax you owe. If you are not earning above the limit, and have been taxed, you can claim this back. WAIT until you have received your P60s. If you have paid any tax you shouldn’t have you can get it back. This takes ages and will probably be in the Autumn.
*Your wage is the amount you receive (net) after tax/NI/Pension have been taken off.
*Your wage is the amount you receive (net) after tax/NI/Pension have been taken off.
The following user(s) said Thank You: Gary
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- TheHud
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2 years 11 months ago #268624 by TheHud
Replied by TheHud on topic How can I tell if I am on IR-ESA or CB-ESA?
Thanks Gary
to clarify. If you have contribution based with an IR top up in our sons case the £17.42 element, is he entitled to the benefits attached to income related ESA such as free prescriptions.
We have had various answers to this, twice saying yes, last time when trying to sort out the savings thing they said no.
Any help appreciated currently he is worried about getting into trouble so just pays for everything as he always has done.
to clarify. If you have contribution based with an IR top up in our sons case the £17.42 element, is he entitled to the benefits attached to income related ESA such as free prescriptions.
We have had various answers to this, twice saying yes, last time when trying to sort out the savings thing they said no.
Any help appreciated currently he is worried about getting into trouble so just pays for everything as he always has done.
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- Gary
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2 years 11 months ago #268637 by Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gary on topic How can I tell if I am on IR-ESA or CB-ESA?
Hi TheHud
I cannot give you any information in regards to your son's case as I do not have all the facts, I would advise you son to make an appointment with his local Welfare Rights Organisation; you can find your local Welfare Rights Organisation to help you with advice by clicking on the link below and putting in your post code, it will then come up with a MAP with a list of agencies. advicelocal.uk
Gary
I cannot give you any information in regards to your son's case as I do not have all the facts, I would advise you son to make an appointment with his local Welfare Rights Organisation; you can find your local Welfare Rights Organisation to help you with advice by clicking on the link below and putting in your post code, it will then come up with a MAP with a list of agencies. advicelocal.uk
Gary
Nothing on this board constitutes legal advice - always consult a professional about specific problems
The following user(s) said Thank You: TheHud
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- Angel
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2 years 11 months ago #268901 by Angel
Replied by Angel on topic How can I tell if I am on IR-ESA or CB-ESA?
On the prescription thing there is a box for ‘being in receipt of IR ESA’ (cannot remember the exact wording) which your son can tick. I too am CB topped up with IR. I have been getting free prescriptions for the 10+ years I have been on ESA. Even if you only get 1p IR you are covered.
The following user(s) said Thank You: TheHud
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