Contribution based esa - how do I qualify?

dizzy11_2

I have been claiming Incapacity Benefit for a number of years, before that I was claiming JSA. I have not worked for approx. 15 years.

Recently I failed the medical for ESA, but my claim was accepted after 'reconsideration'. The reconsideration took nearly 6 months.

I have received the letter saying they are placing me in the wrag group from 18th Feb. 2012.

According to the letter I am entitled to both contribution-based and income-related ESA and that the contribution-based part of the allowance is taxable.

I just don't understand how I am entitled to contribution-based ESA when I have not worked for so long?

Also how much tax will be due and how will I pay it, will I get a tax bill for the back payment I have received? How will it be paid in the future, will it be taken at source or will I have to arrange for it to be paid?

Another letter I have just received says:
Tax year 2011/12,
Total allowance paid 660.69 pounds
Taxable allowance is 197.83 pounds.

I am a single person and this is my only income.

Please help - I don't understand all this!

nannytone_2

as incapacity benefit was contributions based, everyone being transferred to ESA will automatically go onto contributions based ESA for the first year. ( unless they are put in the sypport group, and then they are on contribution based permenantly)

Robbie64

dizzy11 wrote: »

Another letter I have just received says:
Tax year 2011/12,
Total allowance paid 660.69 pounds
Taxable allowance is 197.83 pounds.

I am a single person and this is my only income.

Please help - I don't understand all this!

Hi dizzy11. The figures are probably an addition to the P60 you should have received a couple of months ago and will be the extra amount of contributions based ESA paid from when you were originally refused it until the end of the tax year. You won't have to pay any tax on this amount if you have a single persons tax code, it's just a statement of taxable income.

Haradan

I have a similar query with regard to the contributions based ESA.. I have been on non means related incapacity benefit ( or whatever it was called wayback) since 1985 when paralysed . I've just received letter saying I will be assessed for ESA. As far as I can tell I fall into the support group as one of the descriptors (15points) applies.I won't be eligible for income based ESA but will the NI conts that entitled me to benefit all those years ago now qualify me for conts based ESA. I Worked until my accident in 1985 but haven't been able to work since so have no recent NI conts and reading all the literature it talks of specific tax years?
Thank you

rogerblack

Haradan wrote: »

I have a similar query with regard to the contributions based ESA..
<snip>
I Worked until my accident in 1985 but haven't been able to work since so have no recent NI conts and reading all the literature it talks of specific tax years?
Thank you

The tax years in your case would be 1982/3 and 1983/4 - probably.
In any case - this was determined when you were put on IB, and will not be looked at again.
All those on IB met the contribution conditions at the start, so if you migrate over to ESA, you are treated as meeting the contribution conditions.
If, indeed you are placed in the support group, then no one year time limit applies for those with the appropriate contributions.
(in your case 82-84)

epitome

Both of you will automatically qualify for ESA Contributions based, assuming you qualify for ESA.

Taxable benefit is only of concern if your total taxable income is greater than your tax free allowance. ESA can pay quite a lot per week so yes, you may have to pay tax on it.

You both should look into the fact that those migrated onto IB in April 1995 have a non -taxable status on IB.... You should not lose out by changing benefits, so you should arguably keep your tax free status, something called 'transitional protection' onto your ESA claims.

If this concerns you speak to CAB and and ask for a call-back from someone in the ESA dept who can answer this query.

Sounds like Dizzy started out on IB, and so your IB was probably taxable anyway.

Cpt.Scarlet

epitome wrote: »

You both should look into the fact that those migrated onto IB in April 1995 have a non -taxable status on IB.... You should not lose out by changing benefits, so you should arguably keep your tax free status, something called 'transitional protection' onto your ESA claims.

The Transitional Protection does not provide cover for those who's IB was tax exempt. Tax was and is deducted, where applicable, after the benefit total is calculated.

epitome

So much for the government's claim that "no-one will lose out" then.