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ESA letter about tax
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Nira123
Posts: 19 Forumite

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?
0
Comments
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You received £2258.52 and it's all taxable. Unless you exceed your tax free allowance of £12,570, no need to worry - the first £12,570 is taxed at 0%.#2 Saving for Christmas 2024 - £1 a day challenge. £325 of £3661
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Thanks. So I don’t owe them any money back, which was my worry?0
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Some benefits (such as nsESA) are classed as taxable income.
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?Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0 -
Nira123 said:Thanks. So I don’t owe them any money back, which was my worry?
If the £2258.82 takes your total taxable income above £12,570 for 20/21 - then you may owe HMRC income tax.Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0 -
If you have applied for Marriage Allowance then your Personal Allowance will be reduced to £11,310 rather than £12,570 but you would need to have another £9k+ of taxable income in the 2021:22 tax year to actually have any tax to pay.
If any tax is owed it would be payable to HMRC not DWP.0 -
Nira123 said:Hi,
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?
Contribution based ESA is taxable.0 -
tifo said:Nira123 said:Hi,
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?Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.0 -
tifo said:Nira123 said:Hi,
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?
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.
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poppy12345 said:
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.0 -
tifo said:poppy12345 said:
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.0
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