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esa and private pension
12 years 1 month ago - 12 years 1 month ago #98245 by gingey
esa and private pension was created by gingey
Hi
am totally confused, my sister who has mental health issues is in receipt of esa in the support group,
not sure if it is contributory or income based will phone tomorrow to find out, received a letter this morning saying that her private pension of£206 a month will be taxed by £14,
Phoned the hmrc, who asked me if she was recceiving contributory or income based esa, was not sure so told them it was contributory, and i was told in that case she should be paying more is this correct
would be grateful for any help with this
Have to say a big THANK YOU for all your help in the past, a truly great site
am totally confused, my sister who has mental health issues is in receipt of esa in the support group,
not sure if it is contributory or income based will phone tomorrow to find out, received a letter this morning saying that her private pension of£206 a month will be taxed by £14,
Phoned the hmrc, who asked me if she was recceiving contributory or income based esa, was not sure so told them it was contributory, and i was told in that case she should be paying more is this correct
would be grateful for any help with this
Have to say a big THANK YOU for all your help in the past, a truly great site
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12 years 1 month ago #98249 by Gordon
Contribution Based ESA (not Income Related ESA), is liable to tax, I assume what has happened is that the combination of her ESA(CB) and her pension have exceeded her personal allowance and as a result some of her pension is now being deducted as tax.
It is worth checking her tax code is correct and she is not on an emergency one as this may result in too much being deducted, it also worth checking at the end of each finnancial year what her annual tax liability should be in case she can calim a refund.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
Replied by Gordon on topic esa and private pension
scruffs wrote: Hi
am totally confused, my sister who has mental health issues is in receipt of esa in the support group,
not sure if it is contributory or income based will phone tomorrow to find out, received a letter this morning saying that her private pension of£206 a month will be taxed by £14,
Phoned the hmrc, who asked me if she was recceiving contributory or income based esa, was not sure so told them it was contributory, and i was told in that case she should be paying more is this correct
would be grateful for any help with this
Have to say a big THANK YOU for all your help in the past, a truly great site
Contribution Based ESA (not Income Related ESA), is liable to tax, I assume what has happened is that the combination of her ESA(CB) and her pension have exceeded her personal allowance and as a result some of her pension is now being deducted as tax.
It is worth checking her tax code is correct and she is not on an emergency one as this may result in too much being deducted, it also worth checking at the end of each finnancial year what her annual tax liability should be in case she can calim a refund.
Gordon
Nothing on this board constitutes legal advice - always consult a professional about specific problems
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12 years 1 month ago #98257 by gingey
Replied by gingey on topic esa and private pension
Thanks again Gordon
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