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esa and p60, different query

starbuck

How are the figures worked out for your p60? I know it makes no difference as my husband doesn't pay tax on his esa but his p60 for last year states nearly £100 more than he actually received in esa.
I worked out how much he received by multiplying his fortnightly payments by 26, but the p60 states more than he received.
Does anyone know how this works out?

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starbuck

Worked it out wrong! Have asked for the post to be removed ?

Denise11

Hi Starbuck

It's me again, I hope that's okay.

So, the government sets a personal Tax Code for everyone and I'm not sure what it was last year but lets just say it was in money £7760. They would allow your husband up to earn or receive in benefit £7760 without paying any tax at all. If your husband was on ESA throughout the tax year 22019/2020 then he wouldn't get enough money to be taxed on. You say that he had £100 extra you then you expect he would have but want about the handouts such as the extra £10 for Christmas or some more for heating in the winter! It all adds up, but I would bet all of it would still be under the Tax Limit and like in your daughter's case the Tax Office has to issue him a P60!

Please don't worry, it's just how the system works!

Kind regards Denise

starbuck

Thankyou ? You can always tell when my anxiety is playing up when I start worrying about things like this ??
His tax code is 1185L so I have no idea what that means. I can't believe I've got to this time of life without knowing these things ?

Denise11

Hi! So your husband Tax Code from 6th April 2020 to the 5th April 2021 is 1185L so it means that he can received in benefit or work under £1185 until next April and not be taxed. But, if he did work between then it would mean all his income would being taken into consideration and if it went over £1185 he will be taxed on how much he has over that!

Denise11

starbuck

So it doesn't mean his esa is taxed once it goes over £1185? I'm really confused now! Also do we need to keep all these p60's?

starbuck

Hmm I was looking at the previous years p60. This years states he received £45 than I calculated for the year so it's baffling me as to why it says slightly more than he received. It's so confusing!

Denise11

Hi Starbuck

How would it be if I sent you my email address so that we can talk about this Tax thing privately. Do you use Skype or hangups? I don't want to sound pushy but it if we could talk privately it would be better and nobody else could see any private papers. I would go through it all with you and promise never to talk about it to anyone but i don't like you worrying about it all. Would that be something you would consider? Denise11

starbuck

Hi, that would be cool.

Denise11

Okay! Do you have SKYPE or HANGUPS on your computer? Doesn't matter if not! My phone number is [removed by moderator]. My email is [removed by moderator], And I shall be here all afternoon

Denise11

chiarieds

Hi @Denise11 - The community guidelines ask that you don't give out personal info on the forum. Would you kindly edit your post & remove this, thank you.

starbuck

That's fine. I just wondered what the tax code number means as my husband receives more than the number each year but isn't taxed, and why when I work out his esa amount for the year it comes out as slightly less than stated on the p60. just curious.

Denise11

Starbuck

If your husband is getting on ESA does he get PiP as well than yes he might receive more. But, PIP in non taxable so that means if he stayed on ESA or went to work the money that he's given on PIP doesn't get taxed and you will never see it on a P60. It an allowance for disabled people and nobody has to paid tax on it! From now on keep P60 for six years so if you hold any P60s for
years before 2015 bin them. Next year, get rid of the P60 for 2016. And if you haven't kept these DON'T WORRY, okay? everything will be fine. Copies are kept by the DWP

Denise11

starbuck

Ok. I just wondered why the amount stated on the form is about £45 more than he actually received.

starbuck

I know I'm still bothering about this but I've worked out my husband's esa amount for last year by dividing the fortnightly amount by 14 then multiplying by 366 for the amount of days in last year. It comes to £9.49 less than stated on the p60 so where have I gone wrong? Our daughter tried it with hers and her p60 said £1 less than she received.
Why don't the figures match? Where am I going wrong with the workings out?

starbuck

More to the point am I worrying about something that doesn't even matter?

easy

It really does not matter. HMRC will take tax away if they can. So long as all your earnings are above board you have nothing to worry about.

starbuck

Thanks. I get very anxious when I can't make figures match and it was really bothering me that these numbers don't tally. ??

alieshia

starbuck said:

More to the point am I worrying about something that doesn't even matter?

Try not too worry too much about this. I appreciate how stressful this can be. If the ESA is income related it is not taxed at all. Contributions based and New Style ESA are taxable. I think now that you've worked it out daily it makes much more sense, the P60 states an extra £9.49 received? I would put that down to the £10 Christmas bonus. I wouldn't worry about the few pennies difference personally but if you are still concerned you can ring the HMRC or DWP for a full breakdown explanation.