- Posts: 9439
× Members
ESA (contribution based
- gizmo
- Topic Author
12 years 4 months ago #93443 by gizmo
ESA (contribution based was created by gizmo
I received a letter over the weekend that said I was in the support group yay. But on the end it said that , this allowance is taxable. I don't know why they insert that. or am I reading it wrongly ? Has any one else had a similer letter saying they're in the support group but theirs is contribution based ? If so what exactly does the contributions based mean in relation to ESA and if I don't get enough money to equal the threshold to pay tax why insert it. Paul
Please Log in or Create an account to join the conversation.
- slugsta
- Offline
Less More
12 years 4 months ago #93445 by slugsta
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by slugsta on topic Re:ESA (contribution based
Contributions based ESA is awarded if the claimant has paid enough NI contributions in the previous 2 full tax years. If this condition is not met the claimant will be assessed for income based ESA. Both contributary and income based claimants can be put in either WRAG or Support Group.
Unlike DLA, ESA is counted as taxable income but tax is only paid if the income excedes the personal allowance. It is unlikely that anyone on income related ESa would have enough income to take them over the annual personal allowance.
Unlike DLA, ESA is counted as taxable income but tax is only paid if the income excedes the personal allowance. It is unlikely that anyone on income related ESa would have enough income to take them over the annual personal allowance.
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.
- Gordon
- Offline
Less More
- Posts: 51287
12 years 4 months ago #93446 by Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic Re:ESA (contribution based
gizmo wrote:
As the DWP do not deduct tax from benefits, the responsibility falls to the claimant to review their liability and deal with it as applicable.
By notifying you, the DWP are discharging their repsonsibility to make you aware that the benefit is liable to tax.
Whether any tax is due, is down to your personal circumstances, many claimants in receipt of ESA(CB) have other incomes, which when taken into account with their ESA(CB) mean that they exceed the tax threshhold.
Gordon
All Contribution Based ESA is liable to TAX, whether you are in the Support Group or the WRAG.I received a letter over the weekend that said I was in the support group yay. But on the end it said that , this allowance is taxable. I don't know why they insert that. or am I reading it wrongly ? Has any one else had a similer letter saying they're in the support group but theirs is contribution based ? If so what exactly does the contributions based mean in relation to ESA and if I don't get enough money to equal the threshold to pay tax why insert it. Paul
As the DWP do not deduct tax from benefits, the responsibility falls to the claimant to review their liability and deal with it as applicable.
By notifying you, the DWP are discharging their repsonsibility to make you aware that the benefit is liable to tax.
Whether any tax is due, is down to your personal circumstances, many claimants in receipt of ESA(CB) have other incomes, which when taken into account with their ESA(CB) mean that they exceed the tax threshhold.
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.
- capainFAIRY
- Offline
Less More
- Posts: 50
12 years 4 months ago #93448 by capainFAIRY
Replied by capainFAIRY on topic Re:ESA (contribution based
i got letter sat esa and sup grp ive got both cont based and income related and same bit about taxman. ive also got at the end payment from 1oth nov 2012 to 30th nov 2012? i called and was told loads people calling today seems to be prob with letters that have gone out? i was also told to keep a check for payment after 30th nov. all i can say is i thought they didnt make mistakes and or have system probs.
Please Log in or Create an account to join the conversation.
- slugsta
- Offline
Less More
- Posts: 9439
12 years 4 months ago #93452 by slugsta
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by slugsta on topic Re:ESA (contribution based
Hi Cap'n,
This November date comes up frequently and is a vagary of the DWP system, not an indication of when you might be reassessed (which you can find by requesting your ESA85/85a from DWP).
This November date comes up frequently and is a vagary of the DWP system, not an indication of when you might be reassessed (which you can find by requesting your ESA85/85a from DWP).
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.
- citymike
- Offline
Less More
- Posts: 158
12 years 4 months ago - 12 years 4 months ago #93454 by citymike
Replied by citymike on topic Re:ESA (contribution based
Hi cap'n,
Just to add if you request a ESA72 this shows the date when your next assessment should take place.
CM
Just to add if you request a ESA72 this shows the date when your next assessment should take place.
CM
Last edit: 12 years 4 months ago by slugsta.
Please Log in or Create an account to join the conversation.
Moderators: Gordon, Gary, BIS, Catherine, Wendy, Kelly, greekqueen, peter, Katherine, Super User, Chris, David