does anyone know if you are taxed whe... - Lung Conditions C...
does anyone know if you are taxed when you are in receipt of esa support allowance?
Income-related ESA is not taxable
Contributory ESA is taxable
i get contribution esa but have,t paid tax yet on it
It all depends on how much you have coming in. Income-related ESA is only paid to people on low incomes, so is not taxable. Contribution-based ESA is paid to everyone who is eligible, some of whom may have to pay tax, depending on their other income.
gov.uk/taxable-income/state... - it depends what other income you have. examples: DLA isn't taxable but state and private pensions are. Most people will have a personal allowance of £9440. The highest rate of ESA, in the support group, is £106.50 a week, so that's £5538 a year. There's still £3902 of taxable income available before you would pay income tax, thats about £75 a week, so you could have a private pension or other taxable income of £300 a month and remain under the limit. If you've more taxable income than that then you'll pay tax. If you pay too much you'll get it back, eventually, as some of these pensions start on full tax and you get a code assigned the year after. If you pay too little they'll soon tell you !
thank you Gordon, I have just been put in the support group after going to tribunal [ how stressful is that] I must add, reading your blogs encouraged me to push for it, I was fortunate at last to meet a doctor who actually asked me about my lung condition and how it effected me. I don't have any pensions but my husband works full time I was told by jobcentre plus that when work related esa ran out he would have to keep me! I have worked and paid my own contributions so strongly objected to that. I have received a letter to say it is taxable but I suppose that is if I go over the limit you have explained. many thanks for all your very informative blogs stay well
rosie
Just to clarify on what you've been told, because Jobcentre Plus seem to have given you bad information. If you have been placed in the ESA support group then this will often be for a defined period, and that is renewable. In effect, as long as you satisfy the DWP that you are unable to work, and qualify for ESA and the support group, you'll keep getting ESA - in that respect it will not 'run out' unless you fail to qualify. It's where contribution based ESA is awarded and you're placed in the Work Related Activity Group that it will 'run out' after a year. Income based ESA continues on as long as you meet the criteria.
You have your own taxable allowance, it should not affect your husbands earnings, and you should not pay tax on your ESA because he's working either. 
Now it's £188 something a fortnight. I am on ESA in the support group and get the highest, not sure if mine is taxable but I| think it might be as |i didn't pay enough contributions.
