Hi entire newbie here. I have encountered an apparent discrepancy, in the amount of a taxable benefit I receive, and the amount that DWP tell HMRC I receive. The amount is not great but it is causing me a problem. The other thing that occurs to me is that if they are doing this to one person, likely they are doing it to others. if I am right and they are messing with the figures who, if anyone would be interested. I don't want to waste anyone's time. But its bothering me. Thanks.
Anything is possible, all I know is the actual amount received as opposed to the amount they are saying. I have put the weekly amount into an online calculator, but by all means feel free. The amount in question is 122.65, weekly. Regards
Apologies. Having read that last post it is as clear as mud. The amount I am told I will receive is 122.65 pounds weekly. I do receive this amount but it is paid every 14 days. So I have paid into my account £245.3 fortnightly. Again regards.
The difference appears when the DWP work their magic on it. In my ignorance I calculated my annual ESA as being the weekly amount multiplied by 52, as do a number of websites I've visited since cropped up. This method gives the amount I actually receive. It seems though that this method is wrong. The correct calculation is to take the weekly amount divide it by 7 and multiply by 365. Which has the affect of increasing the the annual sum by a small amount. It's worth mentioning that this small amount never actually appears in my account. What it does, when added to the my other works pension is to give a £70 underpayment on my tax bill. The staff at HMRC, had never heard of this method, but because DWP refuse to discuss the problem, insisting that they are right, nothing can be done.
I'm afraid HMRC are right and there's no magic. Each year has 365 / 366 days in which is 52 weeks and 1 or 2 days. Most years therefore the benefits payment at the end / beginning of the calendar year covers bits of two years. Depending on which payment day the benefit has that may also affect the number of payment periods in the year. That's why social tenants sometimes have 52 and sometimes 53 rent periods in a year - which complicates benefit sums for rent free weeks in HB.
I imagine, given the amount you mention, that it's the pension which contributes more to the tax amount than the benefit.
Thanks for taking time to reply. I must admit that even though I consider myself to be quite intelligent, the mystery of the tax system is quite baffling. It strikes me that it could be an idea straight from a Terry Pratchett novel, that you can be paid weekly, but you're paid daily! You supposedly get paid money, you don't receive but it counts towards your tax. While I do not understand this system I can say it makes no sense, so magic it may not be, a malign form of voodoo would be a better description. Again thanks for your reply I mean no disrespect in what I have just written. I'm just amazed at the tax system that allows billions to be avoided, whilst inventing dubious ways to get money out of ordinary people.