Contributions ESA support group

andrewkuk

Hi - Can anyone advise me if contributions ESA support group is a taxable benefit? I have a small medical retirement pension and they are taking income tax even though it's not even half my personal tax allowance! ESA can't help and say speak to the tax office. The tax office say speak to ESA so just going round in circles and paying tax that I shouldn't be!

Any help would be greatly appreciated.

Kind regards - Andrew

perdita

Yes it's taxable. I wouldn't have to pay tax on my pension (under the allowance) but esa takes it over. They add the two together and take the tax off my pension. Hope this makes sense.

andrewkuk

My pension when's up a small amount in April and you then lose an amount of ESA so I shave well under the tax limit but waiting for HMRC to sort it out.

The small increase was worthless as you lose it in ESA deductions so it's no help with the cost of living crisis!

Thanks for the information 👍

L_Volunteer

Hope the HMRC sorts it out for you as soon as possible @andrewkuk. It doesn't help when the increase in one gets taken out as a deduction in the other, does it? How are you coping with the cost of living crisis at the moment? Please don't hesitate to let us know if there's anything we can do to help 

andrewkuk

As you say you seem to get given a little extra but then it's taken away. It's very difficult with the cost of living and each month is a battle but we just keep going!