Info for long term incapacity claimants

Kinnairdy

Thought this may be helpful to some of you.
There is no Tax Liability for anyone who has been in receipt of Invalidity Benefit prior to April 13th 1995. (in otherwords it is not a Taxable income).
From this date it became Incapacity Benefit which incurs a Tax Liability.
From experience I have found the DSS/DWP may need to be reminded of this by long term claimants.

Ted_Hutchinson

I have mentioned this previously but it really is worth reminding people to check if they are paying tax on their Incapcity benefit.

HMRC are really quite efficient at paying back the tax paid in error and will also add a small amount of interest on the amount as well so if you think you have been paying tax erroneously on your IB it will be worth pursuing the matter.

Some people in receipt of Invalidity Benefit prior to April 13th 1995 may have returned to worklater , only to reclaim IB after 1995, in these cases it may be the IB claims linking rules will work to your benefit, so a further IB claim in fact is regarded as a continuation of the previous Invalidity Benefit claim, thus enabling entitlement to the preferential treatment by the taxman. So if in doubt ask your local IB office for details of your claim history to pass on to the Tax office.