Tax rates and IB?

earthmother

Wasn't sure whether to post here or on the benefits board, but thought there may be more who know on here.

Saw on Working Lunch earlier this week about the abolition of the 10% tax rate, and thought I ought to delve deeper, as my husband receives long-term incapacity benefit, which he is taxed on.

Anyway, I've done some calculations, and found no surprises in that we will actually be worse off next year without the 10% rate.

However, and here comes the big bit - I also found that we appear to have been paying (or rather the DWP appears to have been taking) less tax than we actually should have been paying.

My calculations worked out at an equivalent of £7.09 per week tax due in this current year, they have been taking £5.41.

So - my question - is there some kind of special tax rate or calculation method for those on benefit (which would explain this variation), or are we potentially looking at some kind of tax payment shortfall bill coming our way one day.

Bear in mind he has unfortunately been on this benefit for some years now, so it could rack up quite a bit if the DWP have got it consistently wrong.