Is there a difference between ESA and UC in terms of taxation?

Kimmy87

My claim was similar, maybe this helps.

Incapacity Benefit.

Moved to ESA WRAG (CB based)

After one year, my ESA WRAG changed to IR.

Few years later, moved to Support Group.

Because my eligibility changed from WRAG to SG, my ESA reverted to CB based and I qualified for the IR top up.

ESABenefitsUK123

Edit, additional note. On the subject of NICs, I very recently checked my NIC record, using the government gateway website, and luckily all of my years where I have been on ESA, the record for that year says Full. That's even for the years when I was still on ESA, but because my savings were >16K, I did not receive any money at all from the DWP. Also at that time, I was not in the Support Group.

(BTW, sorry to interpose my messages within the convos of another.)

poppy123456

https://forum.scope.org.uk/discussion/comment/960843#Comment_960843

Yes it would have reverted back to part CB because this always takes preference to Income Related.

WhatThe

(BTW, sorry to interpose my messages within the convos of another.)

You started this thread and I'm really glad you did!!

WhatThe

My case still doesn't add up and it should..

There are at least 6 tax years when I received a P60u from the Benefits Agency. But the ESA LEAP Team sent me statements which show that I only ever received IR ESA, as I keep saying.

I have a letter from another ESA team confirming my entitlement to Class 1 NIC Credits for the duration of my ESA claims.

I have statements from HMRC which show that those Class 1 Credits were not awarded by DWP in that period.

These are all official documents. I can't make sense of this.

ESABenefitsUK123

Thanks a lot for all help so far. When the old style ESA is converted to UC + NS ESA, how is TP paid? Does that amount form part of the fortnightly NS ESA, or does it form part of the monthly UC?

Kimmy87

Not every award is eligible for TP.

TP is designed so at the point of transfer you aren't worse off compared to legacy benefits.

Some people are entitled to an equal or greater amount of UC, so no TP is due.

Where eligible, TP forms part of the monthly Universal Credit award.

Esa deduction is then made from the total UC award.

poppy123456

https://forum.scope.org.uk/discussion/comment/963114#Comment_963114

When your ESA is a mixture of both CB and IR when the CB reverts to NsESA your ESA payment will be £276.40/fortnight. UC then tops up your income. It's known as a dual claim.

Future WCA will be done through UC and the decision will apply to both benefits.

WhatThe

Morgan, hello and a Happy New Year to you!

Please would you have a read of this thread and tell me what you think of my case?

I received an annual P60u from the Benefits Agency following "conversion" to ESA and I have proof from the ESA LEAP Team that I only ever received IR ESA. My Class 1 NIC Credits ended.

How is this possible? Why was I sent an annual P60u?

In that first tax year, my local authority notified me that my "Income Support (IS) status had changed". What kind of IS status might that have been and from what to what?

Thank you.

WhatThe

In addition, I have a statement from my local authority showing that full Housing Benefit (HB) was paid continuously following a change of address in 2008.

However, in reality, those HB payments first went to my previous landlord then were underpaid and repeatedly stopped, following notifications from DWP.

My rent account was in credit for one day over a period of 11 years. Enormous rent arrears for 11 years meant repeatedly having to battle repossession proceedings.

HOW is that possible?

poppy123456

@WhatThe something has just come to my mind. It's about the £10 Christmas bonus from DWP. Have you ever received that Christmas bonus?

You should have been entitled to it if at least part of your ESA was contributions based or you were claiming a disability benefit such as PIP/DLA or you were claiming carers allowance.

If you've never claimed PIP/DLA or carers allowance and received the £10 then there's absolutely no doubts that at least part of your ESA was CB at some point.

WhatThe

poppy, no.

The Subject Access Request I made shows a short period of entitlement to PIP but no award (?)

I remained PCA exempt throughout and "entitled to" Class 1 NIC Credits throughout.

Just found this though…

Jobseeker's allowance (JSA) is taxable regardless of whether someone is entitled to contribution based JSA or income based JSA.

You told me this..

Income Related JSA is not taxable income. Only New style JSA is taxable or the old contributions based but it's no longer possible to claim this one.

WhatThe

😣 I don't know what to think. This is such a puzzle.

poppy123456

@WhatThe ok thanks. The last part of your question about JSA.. Income Related JSA is/was a means tested benefit which isn't taxable income.

WhatThe

Jobseeker's allowance (JSA) is taxable regardless of whether someone is entitled to contribution based JSA or income based JSA.

is from gov.uk

Top search on google says what you're saying..

poppy123456

https://forum.scope.org.uk/discussion/comment/963620#Comment_963620

Ah thanks, I've just looked at a link here and it is confusing. You learn something new everyday and I've learned something today. Income Related JSA is means tested and also taxable IF you've worked during that tax year and your income is more than the personal tax allowance. You would then pay tax if over that personal allowance.

For those that claimed it and didn't receive any earnings from working in that tax year, there would be no tax to pay.

This wouldn't apply to anyone now though because new claims for Income Related JSA are no longer possible due to Universal Credit replacing it.

The only JSA possible now is New style, which is a contributions based only benefit.

Sorry for the confusion. See link.

https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim76222

WhatThe

I paid no Income Tax that year and did not exceed that threshold.

The amount of taxable benefit recorded on the first P60u correlates with six months of ESA payments but I have never claimed JSA nor been eligible to claim.