how will a tax refund affect my esa?

[sooty1002]

Hello all. Just signed up and need some advice. I have just been informed by HRMC via a P800 that I am due a tax refund from 2007 for £2,570. It seems a former employer screwed up and it taken this long for it to be discovered. Anyhow a nice early xmas present once the cheque arrives from the tax man. However, as I am on esa in the support group, how will this refund affect that? I am also on housing and council tax benefit. It definatley will not put me over the 6,000 limit that for sure.

[des8]

Re: how will a tax refund affect my esa?

Hi and welcome
If you are on contributory ESA your savings are disregarded.
If you are on income related ESA your savings/capital are taken into account.
See here: http://www.disabilityrightsuk.org/em...wance-overview
"You cannot get income-related ESA if your (or your partner’s) capital or savings are above an upper limit of £16,000. There is also a lower limit, normally set at £6,000. If your capital is between the lower and upper limits, a ‘tariff income’ is assumed: one pound a week for every £250 (or part of £250) above the lower limit is included as your income in the income-related ESA calculation."

[sooty1002]

Re: how will a tax refund affect my esa?

Okay thanks. I am on income based esa plus i get housing and council tax benefit but there no way I will be over 6,000.

[PAWS]

Re: how will a tax refund affect my esa?

What’s a tax refund? msl:

[sooty1002]

Re: how will a tax refund affect my esa?

Think it is something like the sasquatch legend and I have a footprint as evidence but not much else to prove it exists.