ESA earnings (permitted work) and tax refund

skater_kat

i am on new style ESA and i started a new job under permittted work. my weekly pay is meant to be 120 but my first pay packet has included a tax refund of about £300 as a i had a job earlier in the year and have overpaid tax.
therefore my paypacket has taken me over the permitted earnings threshold. i'm not sure what to do. this means i might be not eligible for ESA for the past month. should i write to them and explain the additional money is a tax refund? it feels a bit unfair to lose my ESA becuase of a tax refund, is this something they might use their discretion on at all?

calcotti

Looking at guidance I am not clear whether a tax refund will be treated as earnings.
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/881138/admv4.pdf
My instinct is that a tax refund should be disregarded but I can’t find anything that states this in the document and it is just possible that it falls to be treated as earnings from a previous employment. Even if the latter applies they would have to relate it to a pay period.

If you want to avoid worrying about you could ring ESA or write to them with a copy of the payslip and ask them to let you know. If you ring you probably need a Decision Maker to look at it rather than just whoever answers the phone.

skater_kat

thank you, that sounds positive... I will avoid the phonecall in case i get someone who has no clue...will send them a letter and my payslip and just hope for the best! 

TELLIT01

skater_kat said:

thank you, that sounds positive... I will avoid the phonecall in case i get someone who has no clue...will send them a letter and my payslip and just hope for the best! 

Is that the voice of experience speaking? :-)

calcotti

skater_kat said:

thank you, that sounds positive... I will avoid the phonecall in case i get someone who has no clue...will send them a letter and my payslip and just hope for the best! 

I suggest something the lines of
You know I am doing permitted work. I am aware that to be permitted work it must be less than 16 hours/week and I must earn no more than £140/week. I have now received my first payslip and have received a tax refund for tax deducted in a previous employment before I stopped work. I enclose a copy of the payslip. I believe the tax refund should be ignored and therefore does not affect my ESA entitlement but would be grateful if you would confirm this.