Tax Code and Employment Support Allowance (ESA)

keddi

Does anyone know if this is correct?

I get a long-term sickness payment from my employer and also get contribution based Employment Support Allowance (ESA) to cover the SSP element which isn't covered after so many weeks.

According to my PAYE Coding because the ESA is taxable it is deducted from my Personal Allowance of £6475.00 which leaves me with a tax code of 93L. That makes me about £1000 a year worse off than when I was the SSP included in my sick pay.

I thought the Personal Allowance was untouchable, but it appers not.

NASA_2

ESA(C) has always been taxable and counted as income.

Are you still getting OSP?

keddi

I get half my normal wages minus the SSP. This is now paid by an insurance company rather than my employer, but it goes through their payroll.

I'd just reduced my working days from 5 to 3 and so having to pay more tax as well is a pain. But at least I have something coming in for the time being.

The ESA medical is very difficult to get through and will get tougher - but that's another story.