ESA to UC Migration - ESA letter about contributory element counting as taxable Income.

HillStreetBlues

Noor711 said:

HillStreetBlues said:

Noor711 said:

   However, I have noticed on a number of forums that people, even experienced mods, are regularly advising that receiving a P60U means your ESA award is contribution-based. 

Receiving a P60U doesn't indicate what ESA is on during that tax year, it's the info in P60U that tells you. Income ESA is not taxable but Con/new style is. The box to look at is "Taxable"

Hello @HillStreetBlues,

Thank you for confirming that getting a P60U doesn't indicate what type of ESA you are getting.  Not sure where the authority for that comes from, but it's something I just know.  The DWP issues it to all claimants after the end of the tax year whilst their claim is ongoing, as some kind of 'housekeeping' with HMRC.  

The info in my latest P60U which I posted above, says under 'Taxable' - £0.00.  So, that tells me it's Income-related ESA only?

Yes, as nothing was taxable then can only be IR ESA (unless they made a mistake)

HillStreetBlues

Newcad said:

ESA has always been excellent at one thing - Sending out bloody confusing letters.

They draft letters to try and cover both IR and CB ESA and end up making a bodge of it, the annual uprating letter is a prime example and confuses thousands of people every year.
Perhaps once all IR ESA has migrated to UC and all ESA letters can be just about CB ESA they might start to get clearer? (Anybody want to buy a flying pig?).

I agree, letters have missed important info, I expect there are quite a few moving to UC will find out they are on a different type of ESA than they expected.

Noor711

Newcad said:

ESA has always been excellent at one thing - Sending out bloody confusing letters.

They draft letters to try and cover both IR and CB ESA and end up making a bodge of it, the annual uprating letter is a prime example and confuses thousands of people every year.
Perhaps once all IR ESA has migrated to UC and all ESA letters can be just about CB ESA they might start to get clearer? (Anybody want to buy a flying pig?).

The ESA annual uprating letters I got never had that paragraph I referred to which said 'You have not paid, or been credited with, enough NI contributions for them to be used in this assessment' which would confirm my claim was income-related only.  That paragraph only ever appeared in 'decision letters' which told me I was in the Support Group.  Every time I updated my capital a couple of times for whatever reason over the years, I'd get the decision letter issued again.  But, the uprating letter doesn't indicate that.  People get confused because in the breakdown of your award at the end of an uprating letter it mentions something about 'your income-related amount' will be X,Y,Z.... from that people assumed wrongly their claim was all income-related.  Bad form of words. 

ESA letters are pretty indecipherable at the best of times.  Glad to have them behind me! 

Noor711

HillStreetBlues said:

Noor711 said:

HillStreetBlues said:

Noor711 said:

   However, I have noticed on a number of forums that people, even experienced mods, are regularly advising that receiving a P60U means your ESA award is contribution-based. 

Receiving a P60U doesn't indicate what ESA is on during that tax year, it's the info in P60U that tells you. Income ESA is not taxable but Con/new style is. The box to look at is "Taxable"

Hello @HillStreetBlues,

Thank you for confirming that getting a P60U doesn't indicate what type of ESA you are getting.  Not sure where the authority for that comes from, but it's something I just know.  The DWP issues it to all claimants after the end of the tax year whilst their claim is ongoing, as some kind of 'housekeeping' with HMRC.  

The info in my latest P60U which I posted above, says under 'Taxable' - £0.00.  So, that tells me it's Income-related ESA only?

Yes, as nothing was taxable then can only be IR ESA (unless they made a mistake)

Thanks for confirming that @HillStreetBlues, if they have made a mistake I'll deal with it once my first statement is issued.