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do you have to pay tax on esa wen on permitted work and self employment

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Comments

  • jajjan
    jajjan Posts: 19 Forumite
    contribution based ESA. With PIP AND HB
  • Darksparkle
    Darksparkle Posts: 5,465 Forumite
    So contributions based esa is taxable as I said. HB and PIP aren’t so wouldn’t be included in any tax calculation.

    If the ESA and profit from your self employment is over your personal allowance you’ll pay tax on it.
  • jajjan
    jajjan Posts: 19 Forumite
    thank you. you have lifted mountains off my head. :j Just need to apply for permitted work now.
  • poppy12345
    poppy12345 Posts: 18,913 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Just some advice. If the work you're going to be doing contradicts the reasons you're claiming ESA then this may go against you on your next re-assessment.
  • epitome
    epitome Posts: 3,199 Forumite
    edited 1 October 2017 at 8:57PM
    Be aware that only the ESA Contributions amount is taxable

    If you have ESA at 125.55 a week
    that is ESA Conts 109.65 and ESA IR £15.90

    or ESA at £188
    that is ESA Conts 109.65 and ESA IR £78.35

    And when you are doing your tax return, you can phone ESA and ask them over the phone what your total taxable ESA was for the last tax year, as long as you phone when the tax year is finished..


    They usually raise permitted work in October, might have been done early this year.....dunno, used to be £115.50 - just realised it is the 1st of October today ?? !!
  • jajjan
    jajjan Posts: 19 Forumite
    Thank you, i'll keep that in mind. And thanks to everyone who has replied. Hope you have a very successful future ahead of you. . And no, I'm not going away from this forum. I'll keep checking this site here or now. You have helped a lot. Although nothing has happened yet regards to my permitted work. All the best
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