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Taxing ESA

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12 years 5 months ago #92127 by jonybegud
Taxing ESA was created by jonybegud
Hi, I have just been changed over to ESA from Inc Ben and told my benefit is subject to tax. I was originally on Invalidity Benefit from prior to 1995, and have never been taxed. Do the new ESA regs specifically backdate the requirement to be taxed to those who were in receipt of benefit prior to 1995? (When Inv Ben changed to Inc Ben). Any advice would be appreciated.

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12 years 5 months ago #92129 by slugsta
Replied by slugsta on topic Re:Taxing ESA

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

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12 years 5 months ago #92130 by Gordon
Replied by Gordon on topic Re:Taxing ESA
John wrote:

Hi, I have just been changed over to ESA from Inc Ben and told my benefit is subject to tax. I was originally on Invalidity Benefit from prior to 1995, and have never been taxed. Do the new ESA regs specifically backdate the requirement to be taxed to those who were in receipt of benefit prior to 1995? (When Inv Ben changed to Inc Ben). Any advice would be appreciated.

I am afraid that is nothing in the EAS Transitional Regulations, which covers the transfer of claimants on other benefits to ESA, that removes the liability of ESA(CB) to tax.

If you have other income, then you will need to notify HMRC of this change, as the DWP will not deduct tax from your ESA(CB).

Gordon

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