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  • FIRST POST
    • bluenun
    • By bluenun 13th Jan 18, 4:02 PM
    • 183Posts
    • 16Thanks
    bluenun
    Is ESA taxable?
    • #1
    • 13th Jan 18, 4:02 PM
    Is ESA taxable? 13th Jan 18 at 4:02 PM
    I was receiving earnings based ESA until I closed my claim recently.

    I do not think it is taxable, is that correct?

    I think it is contributions based ESA that is taxable.
Page 1
    • xylophone
    • By xylophone 13th Jan 18, 4:10 PM
    • 24,059 Posts
    • 14,067 Thanks
    xylophone
    • #2
    • 13th Jan 18, 4:10 PM
    • #2
    • 13th Jan 18, 4:10 PM
    https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits
    • Alice Holt
    • By Alice Holt 13th Jan 18, 4:20 PM
    • 1,711 Posts
    • 1,870 Thanks
    Alice Holt
    • #3
    • 13th Jan 18, 4:20 PM
    • #3
    • 13th Jan 18, 4:20 PM
    earnings based ESA does not exist.

    There is Income-based (not taxable), and
    contribution-based (or New Style) ESA - this is taxable.
    • epitome
    • By epitome 13th Jan 18, 4:42 PM
    • 3,083 Posts
    • 1,870 Thanks
    epitome
    • #4
    • 13th Jan 18, 4:42 PM
    • #4
    • 13th Jan 18, 4:42 PM
    And to make it even more clear...

    earnings based ESA does not exist.

    There is Income-based (not taxable) and
    contribution-based (or New Style) ESA - this is taxable.

    Income Based eligibility is not determined by how much you have earned before starting your ESA claim, it means the amount of ESA you are paid is affected by what your current income is.

    Contributory ESA or Contribution based ESA eligibility is determined by how much you earned before starting the ESA claim. And the amount of ESA you are paid is mostly unaffected by what your current income is.

    Your ESA could have been either one. If it was ESA Conts then phone HMRC with the dates you were paid the benefit and how much they paid which was taxable...and ask them to sort it out. (to pay the tax due).
    Apparently what should happen is when you start your claim you give your P45(showing total income to date) to the DWP, when you finish your claim the DWP give you a new P45 and your total taxable income to date for the year should be showing.
    • bluenun
    • By bluenun 14th Jan 18, 10:59 AM
    • 183 Posts
    • 16 Thanks
    bluenun
    • #5
    • 14th Jan 18, 10:59 AM
    • #5
    • 14th Jan 18, 10:59 AM
    Thank-you all very much for the replies.
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