I used to have a have a minimum waged (UK) job a few years ago. About 3 years after leaving, they're contacted me to tell me that I was underpaid. I am currently not working because I am recovering from an injury (about 2 years ago) so am on PIP and ESA benefits. I've emailed them to query this and they said its just for an hour's salary (which isn't much!) which will have to be taxed, so I am worried if I accept the amount it may somehow interfere with my benefits.

Does anyone know if there is a possible risk of this, or since it's over a small amount, can I just not accept late payment?

Thanks!

it wont affect your benefits and as for being taxed, well you can probably claim the tax back at the end of this tax year

Are you certain of this? Can i still claim back tho if most likely to be recovering from my injuries on benefits, at the end of the year? It still seems like a load of hassle, thinking of just ignoring the amount just in case. thanks v much btw.

It relates to a period in the past where you werent claiming benefits and even though it would most likely be considered income for this tax year the amount is a one off and too small to be considered. As for the overpaid tax, they will ahve to assess what you income is from taxable benefits that are paid without tax being deducted and offset this against the tax paid. As the tax paid will be no more than £1.40 I cant believe that you are seriously worrying about it all.

If you won a tenner on the lottery would you claim to be aprofessional gambler and ask for the winnings to be used to assess your income? No-one in their right mind would, same as peopel can volunteer to pay tax on the monies they receive that is less than the personal allowance. I have yet to see the queue at the Treasury of people waiting to hand that money over.

thats reassuring to hear, it always worries me with hm.rc but have put my faith forward with & went ahead. thanks again!