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Rank: Advanced Member
Groups: Registered
Joined: 1/21/2010
Posts: 69
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i receved letter saying im being charged 20 per cent on my esa i dont understand has anyone else had tax letter since christamas i dont work but dont understand letter cant keep ringing these people cant afford phone bill 
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Rank: Member
Groups: Registered
Joined: 12/3/2009
Posts: 17
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This is from the Direct.gov website - link below. Contact your local tax office if you are concerned in any way. They'll be able to help you. Employment and Support Allowance (ESA) can be taxable or non-taxable. If your ESA is contribution-based then it is taxable. If your ESA is income-related then it is not taxable.
Some people may migrate from Invalidity Benefit to ESA. If you move from taxable Invalidity Benefit to contribution-based ESA then the income remains taxable. If you move from non-taxable Invalidity Benefit or Income Support to contribution-based ESA then the income will become taxable. If you move to income-related ESA then the new benefit will not be taxable.
http://www.direct.gov.uk...dMaintenance/DG_10027059
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Rank: Advanced Member
Groups: Registered
Joined: 1/21/2010
Posts: 69
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thankyou for that i dont care about paying tax.its just this letter appears not explaining why but thankyou again 
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