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employment and support allowance
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i have just receieved a letter telling me that my benefit will change from the old incapacity to the new emploment and support.the letter says that my fortnighly payments are taxable. when i was on incapacity i was told i did not have to pay tax because i had been receiving the benefit before 1995.
should i be taxed or not.aso my incapacity was granted until 2036 but my new one has no end date ,does this affect mobility where you have to show you are in benefit for three years.?
should i be taxed or not.aso my incapacity was granted until 2036 but my new one has no end date ,does this affect mobility where you have to show you are in benefit for three years.?
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1. I don't know about the pre 1995 rules, but incapacity benefit has been taxable for a long time. Contributory ESA is also taxable.
2. There are two categories of ESA - work related activity group, or support group. You should have been told which of these two groups you have been placed in. If the letter you have does not explain this you need to query it. If you are in the work related activity group your contributory ESA (which is not means tested) will stop after 12 months & you will have to claim income related ESA (which is means tested) if you are entitled to it. If you are in the support group your contributory ESA continues indefinitely.
3. If you have been placed in the work related activity group & think you should be in the support group you need to appeal. Go to your local CAB for help with this.
4. So far as I am aware, incapacity benefit has not been given an end date, but the pre 1995 rules may have been different. ESA can have an end date in some circumstances - I think these relate to the support group but am not certain.
5. Can you clarify your point about mobility - I don't see its relevance. Are you referring to disability living allowance? If so, that is quite separate & has its own rules.
2. There are two categories of ESA - work related activity group, or support group. You should have been told which of these two groups you have been placed in. If the letter you have does not explain this you need to query it. If you are in the work related activity group your contributory ESA (which is not means tested) will stop after 12 months & you will have to claim income related ESA (which is means tested) if you are entitled to it. If you are in the support group your contributory ESA continues indefinitely.
3. If you have been placed in the work related activity group & think you should be in the support group you need to appeal. Go to your local CAB for help with this.
4. So far as I am aware, incapacity benefit has not been given an end date, but the pre 1995 rules may have been different. ESA can have an end date in some circumstances - I think these relate to the support group but am not certain.
5. Can you clarify your point about mobility - I don't see its relevance. Are you referring to disability living allowance? If so, that is quite separate & has its own rules.
All Incapacity Benefit (IB) claims are being transferred to Employment and Support Allowance (ESA). Any IB end date will have been superceded by ESA regulations. Both IB and ESA are taxable but are below the Personal Allowance of £8,105 so it shouldn't be a problem unless you have additonal income.
These changes should not affect Disability Living Allowance (DLA). DLA is not taxable.
These changes should not affect Disability Living Allowance (DLA). DLA is not taxable.
I don't understand where 2036 comes in to the equation. If you were in receipt of Incapacity Benefit, you had to attend medicals usually every 5 years or less dependent on your illness/disability. There was no end date. You are correct in that IB was tax free if you received it prior to 1995 but transferring onto ESA will be taxable dependent on your personal circumstances.
futher to my question. i have a private pension which i pay tax on. incapacity benefit was not taxable before 1995 so to date i paid no tax on it. my new benefit(employment and support) it is taxable. my mobility allowance was granted until 2036 and you are correct to say this does not apply,nor does my DLA payment. i jus cannot understand why i have to now pay tax on a benefit that has just been changed by name.
The Government has decided to change the rules! I guess it's all part of the need to reduce benefit expenditure (which making you pay tax on it does effectively achieve). And the change is not just one of the name. The rules for ESA, & the criteria used to decide whether someone is entitled to it, are different from those for IB.
You don't say which ESA group you are in. I guess you are in the support group, but if you are not your ESA will be changed to a means tested one after 12 months (& that is another change which has been brought in - IB was never means tested).
You don't say which ESA group you are in. I guess you are in the support group, but if you are not your ESA will be changed to a means tested one after 12 months (& that is another change which has been brought in - IB was never means tested).
Also if you happen to be below 64 by April 2013, the DLA is being stopped and replaced by PIP (Personal Independence Allowance) and all new claims plus existing DLA claimants will have to apply for PIP between when called between 2013 and 2016 which I understand is going to be more difficult to obtain with most having to have a face to face interview/medical.
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