ESA Support Group - Taxable Benefit?

manhattan

Hi,
A quick question.

Can someone tell me if income related support group ESA is a taxable benefit?

Trying to fill out a tax credits form to send back asap, but i am not sure if it should be listed on the TC form as a taxable social security benefit or not?

The ESA form states:

I am in the support group and gives an income related amount, but then below it states, your income related amount is .... However because you are entitled to contribution based ESA we will pay you ...

Which is an extra £3 a month.

It is also dated from 26th may, so should i have this back dated if it is not a taxable benefit?

Thanks. :cool:

ani_26

I have been told from official sources, income related ESA is a taxable benefit and should be included on your WTC form, and should be included as part of your annual income.

I'm sure someone will tell you otherwise, if this is wrong.

Mupette

yes it is, each year you should get a P60 from them to retain.

Cpt.Scarlet

Guys

Income Related ESA is not taxable and according to the HMRC site is not counted as income for Tax Credits.

http://www.hmrc.gov.uk/taxcredits/payments-entitlement/other-benefits/affect-taxcredits/disability-benefits.htm

Cpt.Scarlet

OP

It sounds like you are receiving Contribution Based ESA with an Income Related ESA top-up.

The ESA(CB) is counted for Tax Credits the ESA(IR) portion isn't.

manhattan

Thanks for the replies.

The ESA letter is very confusing as it states:

Your income related amount is £105.05
However because you are entitled to contribution based ESA we will pay you £108.05 (An extra £3)

I think that extra £3 is because of transitioning from IB

Cpt.Scarlet

If you were transferred from IB then you would have been put on ESA(CB)

grummps

Contribution based is - income based isn't.

This too upsets me, I get ESA contribution based with a Pension credit top up.

I have to pay tax on the ESA - last year it was £729.60!!! The Pension Credit payment is exempt from tax. Next Jan my tax bill is estimated to be over £1000 out of the £5200 I have received as ESA!!!

If I cancelled the ESA claim and had my Pension Credit award increased to match the loss, then I would not pay any tax although the same amount of money was coming into the household albeit from a different source.

Seems stupid really that claiming ESA actually costs me £730. Heyho there you go, even those on benefits are having to be self assessed and pay their tax every Jan. I'm doing my bit for the country.