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Posted Wed, 29 Nov 2023 15:03:41 GMT by
Hello I realise PIP is not considered when doing the tax allowance But a) Is ESA deducted from my allowance each year? b) Is any backdated ESA going to be taken off one year all in one go or subsequent years when ought to have been entiltled to the benefit? I had been on an assessment rate to July 2020 then got a backpayment in June 2023. c) If assuming, I'd get £1500 in interest from my savings accounts over the tax year be over threshold for being on 20 percent and needing to owe tax? d) I assume am I right by an article I do £12,570 + £6734 of this years rate? for New Style ESA in 2023 to 2024 tax year
Posted Thu, 07 Dec 2023 08:43:22 GMT by HMRC Admin 20
Hi ah2023,
a) It depends on the ESA received. Contributory ESA - taxable, and Income related ESA - not taxable.
b) The benefit would be taxed in the tax year received.
c) Yes tax would be due on the interest but you would have the personal savings allowance of £1000 to set against this.
d) For this you would need to contact my colleagues on the ESA helpline 0800 169 0310
Thank you.

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