Employment and Support Allowance (ESA)
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P60U

whistleswhistles Member Posts: 1,603 Disability Gamechanger
Hands up who doesn't understand the purpose of these annual brown envelope syndrome letters.

I thought ESA and PIP were non taxable. 
What's the figure in the first box made up of 52 weeks of ESA? 
I don't understand my tax code either. 


Do not follow me, I don't know where I am going.

Replies

  • wilkowilko Member Posts: 2,184 Disability Gamechanger
    Whistles, you make me laugh, when you receive your tax code there is always an information leaflet exsplaing what the letters and numbers mean check it out. PIP and ESA is most likely I think is treated as income for tax purpose  that's if you have other monies coming in.???
  • whistleswhistles Member Posts: 1,603 Disability Gamechanger
    No leaflet.
    And no other money coming in. 
    Pip isn't taxable, neither was DLA.


    Do not follow me, I don't know where I am going.
  • whistleswhistles Member Posts: 1,603 Disability Gamechanger
    wilko said:
    Whistles, you make me laugh
    Yes I have a habit of doing that with people.
    Should have been my career of choice.  :)
    Do not follow me, I don't know where I am going.
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  • GeoarkGeoark Community champion, Scope Volunteer Posts: 1,347 Disability Gamechanger
    @whistles your tax code comes in two parts.

    The first indicates your allowance before paying any tax, for 2018/19 most people will have 1185. You multiply this number by 10  to get your personal tax allowance so £11,850 of your income is discarded for tax purposes.

    The letter after the number/s gives more information to employers regarding your taxes.

    Most people will have L, which is the basic personal tax allowance so for most people will have 1185L as their tax allowance this  year.

    It is also possible to have more than one tax code. For example if you have more than one job or working and also have a pension you could have the code BR or DO, indicating all the income from that job is to be taxed at the basic rate or higher rate because your personal allowance has been taken up by another income.

    D1 is similar to above but income is taxed at the additional rate.

    M would mean you are benefitting from 10% of your spouse or civil partner's personal allowance.

    N would mean you have elected to give your spouse or civil partner 10% of your personal allowance.

    For some of our members this code would be S meaning they are paying the Scottish rate of income tax.

    These are some of the tax codes, there are a few others. The amount at the beginning can also be affected if you are in work and either claiming work related allowances or receive benefits which can be taxed, for example a company car. 

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  • whistleswhistles Member Posts: 1,603 Disability Gamechanger
    Thanks for replying.
    Yes worked out the code now as looked that up.

    I am not in work so I don't know where they have got their taxable figure from? 
    It's ESA IR it should be 0 in that box.

    Do not follow me, I don't know where I am going.
  • whistleswhistles Member Posts: 1,603 Disability Gamechanger
    I have worked it out, but it doesn't make sense.
    They are saying the £109 esa is taxable but the premiums are not.

    Something is wrong with that. IR shouldn't be taxable at all. 
    Do not follow me, I don't know where I am going.
  • [Deleted User][Deleted User] Posts: 0 Pioneering
    Hi whistles

    How about this:

    The £109.65 X 52 contributory ESA amount for last year is taxable, though the top-up, which is your income-related ESA,  isn't.

    But if your tax code is for example £11,500, then the ESA you have been paid that year isn't taxed, because your income falls entirely below the threshold. 

    £109.65 X 52 is 5701.80, which is less than £11,500. 

    Does that help?

    Gill_Scope
  • whistleswhistles Member Posts: 1,603 Disability Gamechanger
    Um.
    I shouldn't be contribution based. I haven't worked in the last two years.
    The extra is support group and SDP that's apparently not taxed.
    That's why it makes no sense.
    I know I am under so it's not exactly a problem per se, but IR isn't taxable at all. 

    Hey ho. :)
    Do not follow me, I don't know where I am going.
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