ESA letter about tax

19 Posts

Hi,
On UC and recently been seared LCWRA support group. Got back payments.
On UC and recently been seared LCWRA support group. Got back payments.
Got a letter in yesterday saying:
Tax year 2021/22
Total allowance paid £2258.82
Taxable allowance £2258.82
But worried and don’t know what it means. Can someone clarify please?
Tax year 2021/22
Total allowance paid £2258.82
Taxable allowance £2258.82
But worried and don’t know what it means. Can someone clarify please?
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Replies
https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits
Your personal income tax allowance is £12,570.
If your taxable income for 2021/22 was below this figure, there is no tax due.
https://www.gov.uk/income-tax-rates
What other taxable earnings did you have in the 2021/22 tax year?
If the £2258.82 takes your total taxable income above £12,570 for 20/21 - then you may owe HMRC income tax.
If any tax is owed it would be payable to HMRC not DWP.
Contribution based ESA is taxable.
LCWRA is part of UC, UC is means tested and not taxable. New Style ESA which is what the OP is claiming as well is taxable. All information provided in the link above.