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ESA and tax

Are benefits such as ESA paid net of basic rate tax ?
If not - what are the arrangements for paying income tax ?

Comments

  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    edited 14 August 2009 at 3:42PM
    The amount of ESA is less than the tax allowance for the year so there is no tax to be paid.

    The usual way they do it is that if you have income from another source eg a pension they take the tax off of that if you are over the tax allowance.
  • 50Twuncle
    50Twuncle Posts: 10,763 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    So ESA is just treated as "normal" income ?
  • healy
    healy Posts: 5,292 Forumite
    Part of the Furniture 1,000 Posts
    21Twinkle wrote: »
    So ESA is just treated as "normal" income ?

    It is treated as taxable income.
This discussion has been closed.
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