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ESA and private pension annuity

euanT
euanT Posts: 103 Forumite
Part of the Furniture 10 Posts Combo Breaker
in Benefits & tax credits
having just seen some similar posts about this, I now realise I have to declare my annuity payment to DWP as I am on ESA(IB)
My query is that I have opted to take payment annually in arrears due to small amount (£1665.10) before tax, how will the DWP assess this for deductions?? As I have not recieved my first payment yet, can they take money off weekly!!!
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Comments

  • xylophone
    xylophone Posts: 45,652 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Just contact them with the information and let them work it out?
  • rogerblack
    rogerblack Posts: 9,446 Forumite
    euanT wrote: »
    having just seen some similar posts about this, I now realise I have to declare my annuity payment to DWP as I am on ESA(IB)
    My query is that I have opted to take payment annually in arrears due to small amount (£1665.10) before tax, how will the DWP assess this for deductions?? As I have not recieved my first payment yet, can they take money off weekly!!!
    An income is over the period it is paid over.
    If you have an income of £5200 once a year, it's the same as an income of £100 a week, from a benefits point of view, generally.
    It specifically is not generally treated as being a massive income in one week, making you ineligible for only that week.
  • euanT
    euanT Posts: 103 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    rogerblack wrote: »
    An income is over the period it is paid over.
    If you have an income of £5200 once a year, it's the same as an income of £100 a week, from a benefits point of view, generally.
    It specifically is not generally treated as being a massive income in one week, making you ineligible for only that week.

    I get that bit, but will they start taking money straight away, off my weekly benefit, when I will not recieve my first annuity payment till next year!!
  • euanT
    euanT Posts: 103 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    should I wait till next year after I have received the money, then declare it!!
  • Housing_Benefit_Officer
    Housing_Benefit_Officer Posts: 2,502 Forumite
    1,000 Posts Combo Breaker
    For benefit purposes income is treated as income for the period it covers not from the period actually received - otherwise when people start work they would still get JSA/ESA/IS until they get their first wage.

    You can leave things for a year and then see what happens - but I wouldn't.

    http://www.dwp.gov.uk/docs/dmgch28.pdf
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    If it's paid in arrears then it actually means thar it's your income now, I would think.
  • euanT
    euanT Posts: 103 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Dunroamin wrote: »
    If it's paid in arrears then it actually means thar it's your income now, I would think.

    I took out the annuity in May 2013 and will not receive any money until May 2014, got the tax free lump sum straight away but as it was under £6000 did not declare it, am I correct!!
  • Dunroamin
    Dunroamin Posts: 16,908 Forumite
    euanT wrote: »
    I took out the annuity in May 2013 and will not receive any money until May 2014, got the tax free lump sum straight away but as it was under £6000 did not declare it, am I correct!!

    If you're on means tested benefits, you should declare a everything.
  • Housing_Benefit_Officer
    Housing_Benefit_Officer Posts: 2,502 Forumite
    1,000 Posts Combo Breaker
    When the DWP cross reference your P60 then any undeclared income will be picked up. Everything gets crossed referenced. The longer you don't declare a change the bigger the potential overpayment and the more risk of a fraud prosecution and all that entails.

    http://www.boston.gov.uk/index.aspx?articleid=4440

    "... those who try to cheat the system are often not aware of the fraud detection tools that enable the council to detect fraud. They are able to identify undeclared people at properties and receive data matches to show when earnings, savings and pensions have not been declared..."
    These are my own views and you should seek advice from your local Benefits Department or CAB.
  • euanT
    euanT Posts: 103 Forumite
    Part of the Furniture 10 Posts Combo Breaker
    Housing_Benefit_Officer wrote: »
    When the DWP cross reference your P60 then any undeclared income will be picked up. Everything gets crossed referenced. The longer you don't declare a change the bigger the potential overpayment and the more risk of a fraud prosecution and all that entails.

    http://www.boston.gov.uk/index.aspx?articleid=4440

    "... those who try to cheat the system are often not aware of the fraud detection tools that enable the council to detect fraud. They are able to identify undeclared people at properties and receive data matches to show when earnings, savings and pensions have not been declared..."

    My P60 for 12/13 shows a total income for annuity/pay as £4.56 so surely can not flag up much to anyone!!!
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