ESA Permitted work, PIP, UC & tax credits

greeneyedlad

Hello I am on ESA, PIP, & UC.

I was working 14 hours per week under ESA permitted work rules.

I was not paying tax on my salary as it was under the threshold.

I have recieved a tax bill from HMRC as my salary combined with my benefits was over the threshold.

Someone has said to me I should have been getting Tax Credits.

I know nothing about Tax Credit rules. Can someone please advise?

Thank You

poppy123456

PIP and UC are not taxable benefits. The ESA you’re claiming is New style ESA and this is a taxable benefit. If your ESA and earnings are more than your tax free personal allowance of £12,570/year then yes you will need to pay tax. 

You can’t start a new claim for Tax credits because it no longer exists for new claims. UC has replaced it and you’re already claiming this. 

Just so that you’re also aware that Tax credits was a benefit and has nothing to to with the tax you pay HMRC. 

greeneyedlad

Thank you so much for your reply. It makes sense now x

Jimm_Alumni

HI @greeneyedlad, welcome to our community I hope Poppy answered your question! 

Let us know if you have anymore questions about benefits, I'll move this discussion over to our benefits section

If you're wanting to discuss things other than benefits check out our other categories such as the Coffee Lounge!