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ESA letter about tax

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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?
«1

Comments

  • JGB1955
    JGB1955 Posts: 3,836 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    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 £366
  • Nira123
    Nira123 Posts: 19 Forumite
    10 Posts
    Thanks. So I don’t owe them any money back, which was my worry?
  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    edited 28 August 2022 at 9:49PM
    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.
  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    Nira123 said:
    Thanks. So I don’t owe them any money back, which was my worry?
            No you don't owe DWP money back.

           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.
  • 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.
  • tifo
    tifo Posts: 2,107 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 31 August 2022 at 10:32AM
    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?
    Does this mean LCWRA element is taxable?

    Contribution based ESA is taxable.
  • Alice_Holt
    Alice_Holt Posts: 6,094 Forumite
    Ninth Anniversary 1,000 Posts Name Dropper
    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?
    Does this mean LCWRA element is taxable?


        Look at the link I posted on the 28th @ 9.49, that will give you the answer
    Alice Holt Forest situated some 4 miles south of Farnham forms the most northerly gateway to the South Downs National Park.
  • poppy12345
    poppy12345 Posts: 18,878 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper
    edited 31 August 2022 at 12:52PM
    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?
    Does this mean LCWRA element is taxable?

    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.
  • tifo
    tifo Posts: 2,107 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 31 August 2022 at 1:34PM

    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.
    Oh, OK, thanks, the OP said "On UC and recently been seared LCWRA support group. Got back payments .... Taxable allowance £2258.82". There was no mention of ESA on here. So them being on ESA must be from another thread.
  • Spoonie_Turtle
    Spoonie_Turtle Posts: 10,245 Forumite
    10,000 Posts Fifth Anniversary Name Dropper
    tifo 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.
    Oh, OK, thanks, the OP said "On UC and recently been seared LCWRA support group. Got back payments .... Taxable allowance £2258.82". There was no mention of ESA on here. So them being on ESA must be from another thread.
    The title says they got a letter from ESA :)
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