ESA cb and taxable

twizzle1202

Hello i Get cb esa and pip and I understand the cb esa benefit is taxable does that mean I have to do a tax return ?  If that’s my only form of income ? 

poppy123456

No, you will not because CB ESA Support Group annual amount is much less then your personal tax free allowance.

twizzle1202

poppy123456 said:

No, you will not because CB ESA Support Group annual amount is much less then your personal tax free allowance.

Would they let you know then if you ever had to fill in a return ? Would hmrc contact you ? To say ? 

poppy123456

You would need to register as self employed. You're claiming CB ESA only, which is under the personal tax allowance of £12,570/year, so you do not pay tax.

twizzle1202

poppy123456 said:

You would need to register as self employed. You're claiming CB ESA only, which is under the personal tax allowance of £12,570/year, so you do not pay tax.

What I have to register as self employed for receiving the cb esa benefit ? 

poppy123456

No, you do not. You would only register as self employed if you're self employed and earn more than £1,000. https://www.litrg.org.uk/tax-guides/tax-basics/do-i-need-complete-tax-return

Do I need to complete a Self Assessment tax return?

Most people in the UK pay all their tax ‘at source’, for example, through Pay As You Earn (PAYE) if they are employed, and are not required to file a tax return. Self Assessment therefore does not affect everyone and you will normally only need to complete a form if one or more of the following apply to you:

• You are working for yourself – you are self-employed;
• You are a partner in a partnership business;
• You are a minister of religion – any faith or denomination;
• You are a trustee or the executor of an estate.

twizzle1202

poppy123456 said:

No, you do not. You would only register as self employed if you're self employed and earn more than £1,000. https://www.litrg.org.uk/tax-guides/tax-basics/do-i-need-complete-tax-return

Do I need to complete a Self Assessment tax return?

Most people in the UK pay all their tax ‘at source’, for example, through Pay As You Earn (PAYE) if they are employed, and are not required to file a tax return. Self Assessment therefore does not affect everyone and you will normally only need to complete a form if one or more of the following apply to you:

• You are working for yourself – you are self-employed;
• You are a partner in a partnership business;
• You are a minister of religion – any faith or denomination;
• You are a trustee or the executor of an estate.

So the cb esa is not considered as a self employed income as a yearly amount is around 6000 roughly as it’s a benefit income so if I was self employed aswell and earnt over a thousand pounds on top of my cbesa then is that when I would do a tax return ? But because I’m only getting esa cb I don’t have to do a tax return ? Am I understanding it correctly poppy !? Thanks for you help my anxiety is bad 

poppy123456

No problem. That sounds about right. Though you are making it more complicated than it is. You don't need to do anything because your only taxable income is the ESA. Please try to stop worrying.

twizzle1202

poppy123456 said:

No problem. That sounds about right. Though you are making it more complicated than it is. You don't need to do anything because your only taxable income is the ESA. Please try to stop worrying.

Thanks poppy ! I’ve had a day of going over things in my head ! You just want to know you’re doing it all right. Thank you that’s reassuring and thank you for giving me your time .

poppy123456

You're welcome.