ESA Permitted work, PIP, UC & tax credits
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greeneyedlad
Community member Posts: 2 Listener
Hello I am on ESA, PIP, & UC.
I was working 14 hours per week under ESA permitted work rules.
I was not paying tax on my salary as it was under the threshold.
I have recieved a tax bill from HMRC as my salary combined with my benefits was over the threshold.
Someone has said to me I should have been getting Tax Credits.
I know nothing about Tax Credit rules. Can someone please advise?
Thank You
Comments
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PIP and UC are not taxable benefits. The ESA you’re claiming is New style ESA and this is a taxable benefit. If your ESA and earnings are more than your tax free personal allowance of £12,570/year then yes you will need to pay tax.You can’t start a new claim for Tax credits because it no longer exists for new claims. UC has replaced it and you’re already claiming this.Just so that you’re also aware that Tax credits was a benefit and has nothing to to with the tax you pay HMRC.I would appreciate it if members wouldn't tag me please. I have all notifcations turned off and wouldn't want a member thinking i'm being rude by not replying.If i see a question that i know the answer to i will try my best to help.
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Thank you so much for your reply. It makes sense now x
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HI @greeneyedlad, welcome to our community I hope Poppy answered your question!
Let us know if you have anymore questions about benefits, I'll move this discussion over to our benefits section
If you're wanting to discuss things other than benefits check out our other categories such as the Coffee Lounge!They/Them, however they are no wrong pronouns with me so whatever you feel most comfortable with
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