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Is my benefit taxable?

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dickythecook | 18:46 Thu 08th Mar 2012 | Jobs
3 Answers
I am receiving Employment Support Allowance whilst recovering from an amputation of my right big toe and part of my instep. I was trying to see if I could hurry up a tax rebate for this year and HMRC says my benefit is non-taxable, therefore it is the DWP who has to issue any rebate as they are my "employers" of the moment. DWP says that ESA is taxable and the onus is on HMRC. Can anyone shed some light?
P.s. I had an ATOS assessment 5 weeks ago, which I failed apparently. Funnily enough my Consultant Surgeon has not signed me as fit for work just yet 'cos my job entails standing and walking for 4-5 hours at a time. Has anybody had dealings with this flawed (IMO) company?
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It looks as if there are two types of ESA, one taxable and the other not, according to part of the DirectGov website:

http://www.direct.gov...llorinjured/DG_171896

In case the link doesn't work, it says:

" Income Tax
Income-related Employment and Support Allowance is not taxable.

It's important to note that contribution-based...
13:54 Fri 09th Mar 2012
It looks as if there are two types of ESA, one taxable and the other not, according to part of the DirectGov website:

http://www.direct.gov...llorinjured/DG_171896

In case the link doesn't work, it says:

" Income Tax
Income-related Employment and Support Allowance is not taxable.

It's important to note that contribution-based Employment and Support Allowance is taxable, so you may have to pay tax. How much tax, if any, you have to pay depends on whether you receive any other income, for example, an occupational pension.

Depending on your circumstances, you may get a new tax code."

Good luck sorting it out.
As Julie says ESA is both taxable & not taxable which will probably explain the contradictory information you are receiving.
Income related ESA is not taxed
Contribution based ESA is taxable
Employment support allowance has the highest number of appeals against decisions made by the DWP, I would strongly suggest you appeal if you are within time, you should appeal within one month of the letter date which gave you their decision. Remember it is the DWP who make the decisions not the health care professional, who carry out the examination.
I am no expert but I think you would have to wait until the end of the Tax Year and receive your P60. which would hopefully tell you how much tax has been deducted (if any) It would also depend on how much you have earned in the tax year and your tax coding.

Appeal your decision about them saying you are fit for work. Mr Alba was on ESA prior to his knee Op last year and they decided he was fit to work prior to his op. (Do these people live in the real world ?!)

I wish you the best health and a speedy recovery xx

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