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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 4181
Experience:  FCCA FCMA CGMA ACIS
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I was on invalidity benefit before it was changed to incapacity

Customer Question

I was on invalidity benefit before it was changed to incapacity which is now esa. As there has been no break in my claim why am l having to pay tax on it
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.
Hello, I am Keith, one of the experts on Just Answer, nd pleased to be able to help you with your question. Your esa is only tax free if it is income related esa. Otherwise it is taxable. However you should ask your tax office to issue a tax coding against the benefit to enable you to take advantage of your personal allowance instead of having to wait until the end of the year and claim it back when you self assess. Job Seekers Allowance is also taxable, but you have to adjust at the end of the year or when you come off the allowance so, unfortunately, you may find that with esa you are in the same boat. I am so sorry to have to rain on your parade.
Expert:  bigduckontax replied 2 years ago.
Here is a link for a guide to taxable and non taxable benefits:
https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits
bigduckontax and other Tax Specialists are ready to help you
Expert:  bigduckontax replied 2 years ago.
Thank you for your support.