My son is 40 years old, lives at home but independent living is his aim. I am interested to know the tax threshold when a person is receiving PIP and ESA + employment income of approx £120 per month as I don't know if the PIP and ESA are considered to be taxable income.
Advice please.
Hello Tickenham and welcome to the site.
Everyone in the UK should pay income tax.Everyone gets a personal tax allowance which means they can earn/receive so much before they pay tax.I cant remember the single persons allowance but if you go HMRC you will find how much.I believe that with PIP and ESA only there is not quite enough to pay tax because it would not make sense to give it in one hand and take it away again.
£12500 is the amount of money you can have before paying tax.Anything over this is taxable at the standard rate so if your son gets £12600 then he will pay tax on the £100 which at standard rate is 20% so he will pay £20 spread over the year.
In short any income including PIP an ESA is classed as taxable but obviously there is not enough to tax on their own.I think I have this right but check with HMRC and ask for a self assessment form.
Good luck
Hi
Pip is not classed as taxable income as far as I know..plus I just searched seconds ago and it confirms this.not sure about esa tho.itd always be a good idea to call the hmrc for advice etc.. tho it can be a lengthy wait to get through at times..they can be very helpful.
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