Income Tax & Disability Living Allowance/IB.

armadale

Hi Folks, wonder if some kind person out there could help, I was awarded DLA in November 2009 and shortly afterwards was informed that my IB would revert to the full long term rate, as perviously my private pension had been taken into account and the IB reduced accordingly. I am not sure if IB is taxable when tied in with DLA? I do realise that IB is taxable when awarded on it's own as I have informed the Inland Revenue in the past. I suspect that I will have to pay back tax from the date that the IB was increased in November 2009?

Something I would like to ask members is what experiences have they had when it comes to end of the award period of DLA, did they have problems in getting another award? it really concerns me what will happen when my first award ends (Nov. 2011) as I have ostoarthritis and need a reliable car to get around which is something I could not afford without DLA, the difference in having the mobility payment means so much to me.

Thanking you in anticipation.

[Deleted User]

IB & DLA are not 'tied' together. They are seperate benefits, awarded and assessed differently. Lots of people claim one without the other because they either dont qualify for DLA or work so wont need to claim IB. The fact you got your long term rate about the same time is probably a coinsidence.

IB is a taxable benefit regardless, you might need to ask on the tax board re your tax situation as I'm not sure what it is your asking.

Some people reclaim DLA fairly straight forward others struggle and get refused, appeal etc etc. It depends on your health, if your care and mobility needs have changed in any way. Increased, decreased or even that you manage them better so are not deemed as needing care from others.
And on how you fill in the forms which can often be a nightmare and unless you have been filling them in for years or have other insight into how they should be filled in you should get help from the CAB or similar.

Indie_Kid

DLA makes no difference. You don't get a different tax allowance just for being on IB & DLA.

DLA isn't taxable at any rate.

Breast_Cancer_Survivor

Incapacity benefit - summary

Incapacity benefit (IB) is a Social Security benefit payable to those who are incapable of work because of illness or disability. IB is taxable except:

• for the short term benefit paid at a lower rate for the first 28 weeks of incapacity
• where the recipient is over pensionable age and receives a higher rate of IB than the basic short term rate for the first 28 weeks of incapacity
• if DSS makes ex-gratia top-up payments to people over pensionable age
• where IB is payable to a person who was entitled to invalidity benefit prior to 13 April 1995 (when incapacity benefit replaced invalidity benefit) provided the benefit is in respect of the same period of incapacity. (However, if the person was entitled to Sickness Benefit prior to 13 April 1995 then the IB became taxable when that person started to receive the short-term higher rate of IB.) The DSS may ignore short periods of work when determining a period of incapacity, but if a period of work is not ignored, so a recipient who had a period of incapacity before 13 April 1995 starts a new period of incapacity after that date, the IB will be taxable after 6 months under the normal rules.

As they know the details of the claim, the DWP is responsible for determining whether IB is taxable and notifying the Revenue when a person starts to receive taxable benefit. If there is any doubt whether IB is taxable, the person receiving the IB should be asked to seek clarification from the DWP.


http://www.hmrc.gov.uk/manuals/senew/se76180.htm

Breast_Cancer_Survivor

When my DLA ran out they sent me forms to fill in (they looked the same as the ones you fill out to claim) & as nothing had changed my claim continued.