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Tax

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  • Agusya said:
    It says your ESA payment was £411.89 which was paid without any tax paid on it so the bulk of the extra tax is the 20% income tax due on the ESA.
    the question is - why tax wasnt paid on this? Whos responsible for benefit (ESA) tax payment? Is this not done automatically be those issuing benefits? Should I be doing it ?thanks 
    Yes, that's what the calculation you have received is for.

    DWP don't deduct tax but sometimes it is collected from another job or pension you have but when this doesn't happen you just pay it later.
  • Agusya
    Agusya Posts: 190 Forumite
    Fifth Anniversary 100 Posts Name Dropper
    Agusya said:
    It says your ESA payment was £411.89 which was paid without any tax paid on it so the bulk of the extra tax is the 20% income tax due on the ESA.
    the question is - why tax wasnt paid on this? Whos responsible for benefit (ESA) tax payment? Is this not done automatically be those issuing benefits? Should I be doing it ?thanks 
    Yes, that's what the calculation you have received is for.

    DWP don't deduct tax but sometimes it is collected from another job or pension you have but when this doesn't happen you just pay it later.
    Do I fill in tax return or I wait for tax office to send me a letter? I dont work 
  • Agusya said:
    Agusya said:
    It says your ESA payment was £411.89 which was paid without any tax paid on it so the bulk of the extra tax is the 20% income tax due on the ESA.
    the question is - why tax wasnt paid on this? Whos responsible for benefit (ESA) tax payment? Is this not done automatically be those issuing benefits? Should I be doing it ?thanks 
    Yes, that's what the calculation you have received is for.

    DWP don't deduct tax but sometimes it is collected from another job or pension you have but when this doesn't happen you just pay it later.
    Do I fill in tax return or I wait for tax office to send me a letter? I dont work 
    No requirement to complete a tax return whatsoever. Wait for HMRC. 
  • Bookworm105
    Bookworm105 Posts: 2,016 Forumite
    1,000 Posts First Anniversary Name Dropper
    edited 28 November 2024 at 12:23PM
    Agusya said:
    Agusya said:
    It says your ESA payment was £411.89 which was paid without any tax paid on it so the bulk of the extra tax is the 20% income tax due on the ESA.
    the question is - why tax wasnt paid on this? Whos responsible for benefit (ESA) tax payment? Is this not done automatically be those issuing benefits? Should I be doing it ?thanks 
    Yes, that's what the calculation you have received is for.

    DWP don't deduct tax but sometimes it is collected from another job or pension you have but when this doesn't happen you just pay it later.
    Do I fill in tax return or I wait for tax office to send me a letter? I dont work 
    you have received a P800 tax calculation letter for the reasons explained on page 1
    you owe tax
    read page 3 for how to it will be paid 

    Tax overpayments and underpayments: If you’ve not paid the right amount of tax - GOV.UK
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