ESA Contribution Based - off work sick- tax/ NI questions

declutterqueen

Hi,
I am confused hoping for some help!!

I have been off sick from work since July 2013 for the first 6 months work paid me SSP. after that I went on to contribution ESA.
Work have a income protection insurance, they should pay out after 6 months which would mean i should of started being paid 50% of my salary which is £480 per month. Today i have received my wage slip and i have been back dated the insurance money to January this year, and that they will pay me £3846.48 out of this they have taken £273 tax and £346 National Insurance. My Tax code is 495T.
I don't think this is correct.
I have told ESA I am now getting this payment. However is this correct they are taxing me on this and should I be paying NI?


Thanks in advance

bll78

Without exacts about your income so far this year etc.. it's hard to say but seems about right. You tax code means you get £4950 a year tax free. You have been getting ESA which is taxable so lets say you've had £2,000 ish already, then this amount, plus money they will assume for the rest of the year.
If your tax is wrong at the end of the year you will get the money back, or be asked to pay what you owe.
As I said it feels about right. The question I'd be asking is why is your tax code so low? Do you owe them money? Do you have a company car, or other benefits?

declutterqueen

Thanks for your reply,

I have been in receipt of Contribution ESA for 36 weeks.
The year 2014-2015 13 payments of 144 so aprox £1800.

I get PIP of 411 a month but I did not think that effects income for tax?

No Company Car