Taxing my disabled benefit

Silverali72

Hi everyone 👋
I took ill health retirement in March 2020 and I've been getting my works pension ever since, which I pay tax on. It's approximately £16000 a year. However, I've just had a demand from HMRC to pay additional tax on my ESA (approximately £5900 a year) which I didn't expect. I'm in the Support Group for ESA. 
They've added my ESA to my pension to make approximately £22000, knocked off £12500 for my personal allowance and are charging me 20% tax on the remainder. It's a pretty big bill too! Is it right that my benefits count?? I don't want a surprise bill every year. Thanks in advance! 

sheramber

Is it contribution based ESA?  If it is, it is taxable.

Silverali72

I think it was initially but then I was put in the support group, which means it continues indefinitely and doesn't stop after the 52 weeks have passed. 

[Deleted User]

It appears from this that it is taxable:

https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits

Keep_pedalling

With just over £300 a week in pension income, your payments are going to be contribution based and therefore taxable. You should not get more surprise bills as your tax code has been adjusted to cater for your total income.

Silverali72

Thank you all for your help, it's very much appreciated!