Last payment of ESA-paid day short or not?

anotherquestion
anotherquestion Posts: 441 Forumite
Fifth Anniversary 100 Posts Name Dropper
edited 21 November 2023 at 4:20PM in Benefits & tax credits
Hi there folks,

Just started state pension, previous to this I received ESA Contribution based. ESA was usually paid  into my bank account on a Friday, my 66 birthday was following Thursday,  I had to ring them up and tell them I was now of pension age, as I had received no notification whatsoever, good job I did as my ESA was still open, and I didn't want to receive both and have to pay it all back later.

I have claimed State pension and that seems ok.

Anyway they have done a faster payment for five days of ESA from the last full payment day a Friday to my 66 birthday which fell on a Thursday the following week, a payment amount equal to five days.

1 Just wondering if it should be six days taking that Friday into consideration and if so should I contact them to get it paid.

2 Although ESA is showing on my HMRC online personal tax account
 and I have option to remove it or not, should I tell the ESA to make sure that they inform HMRC to do it, as to be honest I don't trust them to automatically inform HMRC , and I don't want HMRC to tax me on both ESA amount + State pension for remainder of current tax year.

Thanks so much for any advice.



Comments

  • poppy12345
    poppy12345 Posts: 18,877 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper
    I don't know how the payment cycles work but i do know that your ESA would have ended the day before your 66th birthday because it can't be paid once you reach that age.
  • Robbie64
    Robbie64 Posts: 2,107 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    edited 21 November 2023 at 4:59PM
    It would be 5 days of ESA to be paid. ESA is paid in arrears up to your payday so with a Friday payday you are paid for benefit weeks running Saturday to Friday. If you turned 66 on a Thursday ESA would be payable from the previous Saturday to the Wednesday, which is 5 days.
  • Thanks that clears all that up, much appreciated, now here's hoping they do tell HMRC about ESA ending, and state pension beginning, as I don't fancy paying tax on both ESA and State pension if HMRC are made none the wiser.

    :)
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