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Carers allowance ESA and paying tax

RebeccaJ

I receive ESA and am awaiting Carers Allowance. Do I need to pay tax on these benefits and if so, is it taken automatically? Sorry but I'm confused about it all.

Thanks

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poppy123456

Which ESA are you claiming? If it’s New Style ESA then carers allowance is treated as an overlapping benefit and both can’t be paid at the same time.

Looking back at your previous thread I see I gave you some advice back in 2023 about claiming benefits. If you claimed ESA at that time then it will be New style ESA you’re claiming.

Are you claiming Universal Credit as well?

RebeccaJ

Hi yes it's the new ESA I get. It's not much, around £10 a week but it gives me National Insurance stamps. I don't qualify for Universal Credit due to my work place pension.

poppy123456

That means if you're entitled to carers allowance the ESA amount will be deducted from it. If all your taxable income is more than your personal allowance of £12,570/yearly then yes you will need to pay tax. It will not automatically be paid.

https://www.litrg.org.uk/tax-nic/how-tax-collected/tax-state-benefits

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