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HMRC understanding my taxable income


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I am disabled and my wife is my full time carer.l receive ESA and my wife receives carers allowance.We have been trying to understand the figures HMRC have sent us regarding our tax credits.



My ESA is income and contributionlink3.gif based (l rang ESA and asked how much is income based and how much is contributionlink3.gif based but l was told they couldn't give me those figures).



I have my P60 which says my ESA benefit for the year was £7,783.68 and the taxable amount was £5,842.61

The letter from HMRC regarding our tax credits says my ESA taxable benefit is £7774.50



I was told that HMRC only take into account a certain amount from my ESA as it is income and contribution based.l just wanted to know if something isn't right with these figures.Should the taxable amount on the P60 match the taxable amount on the HMRC letter.



Thank you

Edited by honeybee13
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Hello and welcome to CAG.



I agree with you that something has gone wrong. I don't understand about P60s and ESA, but I agree with you that only the contribution based part is taxed.



Is it worth ringing the ESA people again to ask for a figure? I don't know why they can't tell you how your benefit is split, given that it's important for your tax position.



Are you paying more tax because of this or is your total income under the tax-free allowance?



Best, HB

Illegitimi non carborundum




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I rang ESA because it says on one of their letters they have notified HMRC on how much is contribution based and how much is income based.The only figures they gave me are the taxable and total amounts of ESA which matches up with the P60.The reason l have started looking into it is because we seem to have less money coming in each year.lf this is correct HMRC have been giving us a lot less family credit than we should have.

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If you are on Child Tax Credits only, this shouldn't make a difference as the threshold for payments reducing is £16,105 so you will be on the maximum entitlement anyway.


I think the tax credits system can "see" certain other benefits i.e. when completing the renewal, but it is not sophisticated enough to separate the figures.


In future, when doing the renewal just change the figure to the correct one, if it is for current year you can amend it anytime.

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You are correct,thank you GamerNic.

On paper it looks like l am being underpaid by 2k per year but as you say,it has been adjusted their end and l am at maximum limit for child tax credits.l have updated all figures with them so it all matches up now :)

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