On-going issues with benefits

System

This discussion was created from comments split from: Not had migration letter yet.

Morgan_Alumni

@WhatThe, I don't want to derail this post but was wondering if you've ever posted a full breakdown of what's happened to your claims anywhere? From the posts of yours I've seen, it sounds as though there have been many errors and although I can't promise I'll be able to help, I'd be more than happy to take a look and see if I can figure any of it out with you.

WhatThe

Morgan, I did ask for your opinion on another thread so yes please, if you can - Is there a difference between ESA and UC in terms of taxation?


WhatThe Online Community Member, Scope Member Posts: 2,922 ChampioningJanuary 6 edited January 6

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 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?

This would be really helpful to know. I was too ill to ask such questions back then, being in rent arrears from Day 1 and overwhelmed from the paperwork.

Morgan_Alumni

Hello @WhatThe.

I'm very sorry I must have missed that when it was posted.

So Universal Credit is not taxable and I believe you should not receive a P60U if you are only claiming Universal Credit and no other benefits.

The rest of my comment is made with the assumption that before claiming ESA, you were claiming Income Support. It could help if you are able to share dates of what benefits you have claimed and when (but please only share what you are comfortable with sharing).

P60U and IR ESA: A P60U is usually issued to summarise taxable benefits received during a tax year. However, if you were only receiving Income-Related ESA (IR ESA), which is non-taxable, you shouldn’t have received a P60U.

The fact that the ESA LEAP Team has confirmed you only received IR ESA suggests there might have been a misunderstanding or error. It’s worth contacting the DWP to confirm why a P60U was sent, as it could imply they hold a record of taxable benefit for you (e.g., Contribution-Based ESA) during the relevant period on your P60U, even if this wasn’t actually the case.

NIC Credits and Income Support: I'd really only be speculating, but I imagine when your local authority mentioned your "Income Support status had changed," it likely referred to the transition from IS to ESA. During this process:

• Your NIC Class 1 credits may have ended if they were linked to your IS entitlement.
• The "change" might indicate that your IS claim was closed when you were moved onto ESA.

The exact change could vary depending on your circumstances at the time (e.g., a reassessment of eligibility or a shift in the type of benefit you were receiving).

Have you looked at your personal tax account to see what they did around that period of time?