DLA whilst working HELP

helpme90

Please help me.
I hope this is in the right thread.

For the last 5 years I have suffered very badly with Anxiety related epilepsy and as a result have been unable to work so have been recieving DLA (around £295 a month). However of recent I have become better, but still being monitored for it but have been given the thumbs up to begin work. Having gone through the stress of badly trying to find work in the one field I have strived to work in, I successfully got myself a job in ICT and could not be more pleased - this has been not completely endorsed by my doctor and the people close to me because for the reasons it is only an apprenticeship and as a result only £185 per week. Frankly, I dont care. I see it as a route to a future in this industry. 5 years down the line I want to be free of the disability which has stopped me in my young years, off benefits and on a good wage.

The reason this job appealed to ME so much was simply because I could strike the wage balance between DLA and my basic salary to earn a good enough amount to live on. I earn my money from my job and get my benefit which however is still less than national miniumum wage (has to be taken into account later on in the post)

Naturally, I assumed I would not be getting taxed at all but to my disbelief and complete sadness i got the following letter today stating:

Dr X

Your tax code for the year from 6 April 2013 to 5 April 2014 is 274T (my company name) will use your tax code to work out how much tax to take off the amount they pay you. You need to check that our information is correct.

This is how we worked out your tax code:

balance of tax allowance £2749
a tax-free amount of £2749

We turn £2749 into a tax code of 274T.

It then says on the following page

Your new tax code for the year from 6 April 2013 to 5 April 2014 is 669L, which replaces 944L

This is how we worked out your tax code:

Your personal allowance £9440
other earnings, (or pension) £-2749
a tax-free amount of £6691

We turn £6691 into a tax code of 669L. (my company) will use this tax code to work out the right amount of tax to take off each time they pay you.

On a special note the one that stands out most is (and worryingly)

We will check if there is anythign that would reduce your tax-free amount. We have transferred £2749 of your tax-free amount to use against your other income or pensions. At the end of the year we will check if you have paid the right amount of tax.

There are other stuff on this letter too, I will type out if anyone needs extra info.

Basically, please help! I am so gutted because I feel now that I am going into this job working for peanuts and being disadvantaged because of that wage. I have someone else doing the same job who will now be earning more than me and doesnt have to go through the same amount of potential added stress the job comes with, plus, I am going to feel more pressure to make this apprenticeship work in order to stay on to earn a better salary long term!

Have I read the letter wrong??? Or am I right in thinking I am going to be taxed what is IMO a outrageous amount!

ANY replies would be so so appreciated.

Thank you.

jacques_chirac

Is the £2749 not from ESA/ Incapacity Benefit?

How recently have you become better? DLA recognises that conditions can be variable, but you do need to notify them if there has been an improvement in your condition. It is not intended to be a top up to your wages.

helpme90

jacques_chirac wrote: »

Is the £2749 not from ESA/ Incapacity Benefit?

How recently have you become better? DLA recognises that conditions can be variable, but you do need to notify them if there has been an improvement in your condition. It is not intended to be a top up to your wages.

I don't know where the £2749 has came from. That works out at around £220 a week and that is slightly less than what DLA I get.

I havent recently "became better" either. It is just that I have deemed myself fit to work and have found a job that is appropriate. I certainly do not see it in any way as a top up, I just see it as a way of taking a step back to do something I want to do long term/find work in the meantime. I certainly dont need justifying on my DLA rights.

Quite simply though I do not understand that letter.

I read it as I am going to be taxed a considerable amount (in relation to the two incomes combined which equals £240 and that isnt a great deal) and dont think that is really correct, well it isnt.

jacques_chirac

helpme90 wrote: »

I don't know where the £2749 has came from. That works out at around £220 a week and that is slightly less than what DLA I get.

I havent recently "became better" either. It is just that I have deemed myself fit to work and have found a job that is appropriate. I certainly do not see it in any way as a top up, I just see it as a way of taking a step back to do something I want to do long term/find work in the meantime. I certainly dont need justifying on my DLA rights.

Before throwing your toys out the pram, perhaps you need to recall what you wrote a short time ago. We can only advise on the information given, and a change in your condition does need to be notified to the DWP.

helpme90 wrote: »

For the last 5 years I have suffered very badly with Anxiety related epilepsy and as a result have been unable to work so have been recieving DLA (around £295 a month). However of recent I have become better, but still being monitored for it but have been given the thumbs up to begin work.

£2749 from the beginning of the tax year would amount to around £100 a week. Have you been in receipt of ESA/ IB?

helpme90

jacques_chirac wrote: »

Before throwing your toys out the pram, perhaps you need to recall what you wrote a short time ago. We can only advise on the information given, and a change in your condition does need to be notified to the DWP.

In short, I suffer from epilepsy. I take extensive medication to counter this. I saw my consultant about this only 1 month ago where she actually upped my med because of wanting to make sure I didnt suffer because of my concentration at work. There hasnt been a change in my condition. There has just been a change in my circumstances, ie, I have found work that is ideal for me in the short and (hopefully) long term. Evidentally i cant do certain type of jobs.

This post and worry of mine is more related to what is happening with my tax and not my DLA.

jacques_chirac wrote: »

£2749 from the beginning of the tax year would amount to around £100 a week. Have you been in receipt of ESA/ IB?

No ESA. I am sorry but I dont know what IB is.

nannytone_2

so until you started this job, your ONLY income was from DLA?

helpme90

nannytone wrote: »

so until you started this job, your ONLY income was from DLA?

Thanks for the reply nannytone.

No it wasnt my only income. My last job ended on April 2013. Since then I have also recieved JLA whilst looking for work.

nannytone_2

the4 JSA is taxable income and that is what is showing up as earnings

helpme90

nannytone wrote: »

the4 JSA is taxable income and that is what is showing up as earnings

Thankyou nannytoe.

Does this mean the below is the taxable income?

This is how we worked out your tax code:

Your personal allowance £9440
other earnings, (or pension) £-2749
a tax-free amount of £6691

If so, what amount do you envisage I will get taxed? Does the £-2749 equal the amount I will get taxed over the year? Considering my salary works out at less than £10,000 (much less than even NMW), I just find it very harsh that I will get taxed a great deal just because I have claimed (and rightly claimed) JSA during periods in the last 3 years.

nannytone_2

i really dont know an awful lot about tax coding to ge honest.
id ring HMRC and ask then how they came to the figure.
if you will be on a low wage, you could apply for the disability premium of working tax credit.
as long as you work over 16 hours a week, its worth putting in a claim

helpme90

Thanks for the replies, particularly nannytoe.

This still seems uncertain so I would gladly appreciate anymore replies. My family are telling me not to worry and that it is simply just a tax code change and I will pay mininal tax. I hope this is the case.