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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4097
Experience:  FCCA FCMA CGMA ACIS
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I have Multiple Sclerosis. I ceased working in 1991 and have

Customer Question

I have Multiple Sclerosis. I ceased working in 1991 and have received Incapacity Benefit and PHI payments from my employer since then. This year I was transferred onto ESA with no requirement to work.I have just received a letter from HMRC to say I have underpaid tax £910.00. They have added the ESA onto my PHI income for the calculation. Is this correct?My PHI tax code is 1000L.Thank you
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I'm Keith and happy to help you with your question.
Unfortunately, yes; here is Gov UK's information about taxable benefits:
'The most common benefits that you pay Income Tax on are:
The State Pension
Jobseeker’s Allowance
Carer’s Allowance
Employment and Support Allowance (contribution based)
Incapacity Benefit (from the 29th week you get it)
Bereavement Allowance
Pensions paid by the Industrial Death Benefit scheme
Widowed Parent’s Allowance
Widow’s pension'
So sorry to have to rain on your parade.
Customer: replied 2 years ago.
Thank you. Am now worse off than before. Was hoping I would've exempt as my original Incap Benefit claim was way back in 1991.
Expert:  bigduckontax replied 2 years ago.
Yes, but the rules in this area are constantly changing. I am so sorry to hear of your predicament.
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Expert:  bigduckontax replied 2 years ago.
Thank you for your excellent support.