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Help with taxable allowance

(3 Posts)
cbd Tue 16-Oct-12 12:49:26

I have just been rewarded Employment and Support Allowance after battling an appeal with, but this afternoon I have recieved a letter from ESA and dont fuly understand what it means.

The letter says "We are writing to tell you that the contributory element of Employment and Support Allowance can count as taxable income."

can anyone explain to me what this means, sorry if I come across as silly but I've never had a letter like this before.

thank you

Rockchick1984 Tue 16-Oct-12 12:55:27

Basically, if you have earned over the threshold for paying tax this year you will have income tax taken off your ESA money. smile

MissKeithLemon Tue 16-Oct-12 13:00:21

As Rockchick says JSA is counted towards your annual earnings for tax purposes.

You will receive a P60 in April/May if you are still claiming by then, or you will receive a P45 if you stop claiming earlier.

You should declare this as taxable income for 2012-13 when asked (ie tax credits claim).

If you have earned over the tax threshold £8,100) already this year since April, you will be taxed on the JSA although not at source.

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