If they TAX Disability benefits(DLA/PIP/ESA)How much £ to lose? Tax calculation Help!

gemmaking

If they TAX Disability benefits (DLA/PIP/ESA) STUCK on calculation! + is Hb included?


If the government taxed the disability benefits as part of the benefit welfare reform,
how much money could somebody lose out (due to paying it to tax, under the new law to tax disability benefits)

in the below income circumstances


i) Would they just consider taxing DLA/PIP alone? or also including Esa too? and which type of Esa? (contribution based/ income based?)


ii) If the tories tax disability benefits, DLA and PIP, then would they also include the tax on ESA too? and HB?

iii) (ie, for your total annual income, would ESA and your HB and Council tax be considered contributions?)

or HB is not really considered an income?

iiii) Can you help with this calculation please:
If the taxing disability law comes in, how much money would this person lose under the new law (where they would have to pay tax, and lose some money to the tax)

DLA (HRC, HRM) =£137.5 per week
ESA (Support) = £184.8 per week
-No other income

so you have to from that, work out the annual income, and then the Band of 'allowed non taxable amount' found here:

https://www.gov.uk/income-tax-rates/current-rates-and-allowances

(Personal Allowance 2015-2016 being £10,600)

and then show much much a typical person would lose, due to them taxing the disability.



It would be great if you could show the calculation aswell, cheers.

eg: [(£137.5 + £184.8) x 52 (weeks) ] x 20% ??


Thank you in advance

tomtom256

Is one topic not enough for this? https://forums.moneysavingexpert.com/discussion/5248917

Don't panic until you need to.

markmarkmark

It depends what other income you have.

If someone just had DLA then £137.5 x 52 is £7150, this is below the personal allowance, thus no tax to pay. Like wise if they just had the ESA there would be no tax to pay since under the threshold.



To answer your question:
If you have DLA £7150 plus ESA Support (ESA Contribution is already taxed), then £184.8 x 52 is £9609 plus the £7150 is £16759.

£16759 minus personal allowance £10600 is £6159.

Tax to pay is £6159 x 20% = £1232 a year, or around £23.69 a week.



That is with no other income, if say someone had a pension which took them over the tax allowance threshold then tax is due on the total amount at 20%. £16759 x 20% is £3352, so they would lose around £64.46 a week.

If they were a higher rate taxpayer, obviously even more.

gemmaking

markmarkmark wrote: »

It depends what other income you have.

If someone just had DLA then £137.5 x 52 is £7150, this is below the personal allowance, thus no tax to pay. Like wise if they just had the ESA there would be no tax to pay since under the threshold.



To answer your question:
If you have DLA £7150 plus ESA Support (ESA Contribution is already taxed), then £184.8 x 52 is £9609 plus the £7150 is £16759.

£16759 minus personal allowance £10600 is £6159.

Tax to pay is £6159 x 20% = £1232 a year, or around £23.69 a week.



That is with no other income, if say someone had a pension which took them over the tax allowance threshold then tax is due on the total amount at 20%. £16759 x 20% is £3352, so they would lose around £64.46 a week.

If they were a higher rate taxpayer, obviously even more.

Thanks markmarkmark

billywilly

markmarkmark wrote: »

It depends what other income you have.

If someone just had DLA then £137.5 x 52 is £7150, this is below the personal allowance, thus no tax to pay. Like wise if they just had the ESA there would be no tax to pay since under the threshold.



To answer your question:
If you have DLA £7150 plus ESA Support (ESA Contribution is already taxed), then £184.8 x 52 is £9609 plus the £7150 is £16759.

£16759 minus personal allowance £10600 is £6159.

Tax to pay is £6159 x 20% = £1232 a year, or around £23.69 a week.

It is only right that someone with an income of £16759 SHOULD pay that level of tax. If it was a wage, they would so what is the difference?
And don't bleat about the extras that a disability costs. When I had my DLA it didn't cost me a penny extra.

lemontart

billywilly wrote: »

And don't bleat about the extras that a disability costs. When I had my DLA it didn't cost me a penny extra.

whoopde do for you not costing extra, such as additional electric/gas when house bound, charging power chair which I bought from ebay the stair lift another purchase from ebay and said electric for that, incontinence products. Lots do have extra costs so please do not judge or comment on those less fortunate than you.

Getting a tad fed up with folk judging me and others because or what ever reason we are or have become disabled let alone from others who are so.

lemontart

rant aside as no idea if or how it would work this gives idea on tax on wages at present so may or may not be a guide http://www.thesalarycalculator.co.uk/salary.php

m4rc

billywilly wrote: »

And don't bleat about the extras that a disability costs. When I had my DLA it didn't cost me a penny extra.

What a strange comment! Genuine disabilities cost people money, from adaptations and equipment, to getting about, support costs, carers, having to have extra space to store equipment, there are so many costs.

If you don't have any extra costs you don't need the money, its not there as a reward for being different, it's to pay for the extra costs that many people with disabilities have.

It's really easy to understand, they even explain it in the title: disability living allowance care component and mobility component.

faerielight

well said m4rc.. How rude are you billywilly !Ihave carers and all my care component goes to the care agency and all my mobility allowance goes to a motability car.. being disabled is more costly for sure.. you won't know unless you become disabled just how much more expensive life is , I could list so many things that the NHS do not provide , but I'm sure you would argue the toss and I've got better things to do than argue with someone as ignorant as you.

CTcelt1988

Everyone ignore Billywilly. He's a troll and just repeats the same stuff, avoid him.

ukmaggie45

billywilly wrote: »

It is only right that someone with an income of £16759 SHOULD pay that level of tax. If it was a wage, they would so what is the difference?
And don't bleat about the extras that a disability costs. When I had my DLA it didn't cost me a penny extra.

You are full of sour grapes Andy.