Success with support group for ESA

Egon Peter Hopkinson wrote:

Hi
Congrats on SG, but I have a query regarding tax excemption. I thought that IB ESA IS etc were all taxable benefits, mine are and I get a P60 every year. I don't see how IB can be tax excempt, whereas DLA is.
Regards
Peter

Hi EPH,

With respect to IB recipients being Tax exempt see this extract:

•Incapacity Benefit paid after the first 28 weeks of incapacity, together with any Child Dependency increase - but don't include it if you claimed it before 1995 and have received it ever since

From this webpage:

www.direct.gov.uk/en/MoneyTaxAndBenefits...rkinghours/DG_174178

So it's if in receipt of Incapacity Benefit since 1995 under transitional protection from Invalidity Benefit.

As for DLA this has always been a totally non means tested allowance, and has never been liable to tax.

bro58

Mod Edit : As Gordon states no such tax exemption is carried over to ESA.

Yes, that's right, Gordon. My husband has received IB for many years following a near lethal car crash. I have managed to remain self employed, (hence the tax credits) but these will obviously be quite heavily reduced now.

Still, I am glad he was put into the support group. One thing I am a little surprised at was that there was no mention of number of points he had, although I suspect that could be because the assessment was stopped after a few minutes and we were told that he should never have been called in the first place. I just hope the system leaves him alone for a while now.

Congratulations Magwitch. Horrible that you had to go through all that but hopefully you can both just get on with your lives now - gives us all hope