Sometime earlier this year, I got my annual slip of paper from the DWP, telling me how much of my ESA benefits counted towards taxable income.
It's handy to know this, as I can easily work out what remains from my annual personal tax allowance, by subtracting the personal tax allowance rate (currently set at £12570) with this figure that the DWP have told me.
But what I don't understand is how they have arrived at the figure that they have told me. I can't find the slip of paper at the moment, but I did write down this figure, and it was £6835.50
(I am guessing that the slip of paper told me information relating to the previous tax year, which was 2023-2024.)
I am currently on contrib ESA. I am in the support group. I am getting the low income premium, as my total savings comes to less than 6K. I am also getting the severe disability premium.
Can anyone tell me how the DWP have arrived at the figure of £6835.50, for the amount of taxable income? Thanks very much for any comments.