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Are ESA ‘credits only’ claims taxable?
My client has recently been awarded an ESA ‘credits only’ claim. However ESA informed HMRC and now my client has had his tax code altered by £2000.
I’m assuming this is a mistake? I know new style ESA is taxable but surely getting national insurance credits does not affect your tax code?
Thanks
Has you client told you what the Tax Code Notice of says alongside the adjustment? Any possibility it relates to something else?
If it is the ESA it is clearly a mistake.