State benefits that are taxable
The most common benefits that you pay Income Tax on are:
- the State Pension
- Jobseeker’s Allowance
- Carer’s Allowance
- Employment and Support Allowance (contribution based)
- Incapacity Benefit (from the 29th week you get it)
- Bereavement Allowance
- pensions paid by the Industrial Death Benefit scheme
- Widowed Parent’s Allowance
- Widow’s pension
Tax-free state benefits
The most common state benefits you don’t have to pay Income Tax on are:
- Housing Benefit
- Employment and Support Allowance (income related)
- Income Support – though you may have to pay tax on Income Support if you’re involved in a strike
- Working Tax Credit
- Child Tax Credit
- Disability Living Allowance
- Child Benefit (income based – use the Child Benefit tax calculator to see if you’ll have to pay tax)
- Personal Independence Payment (PIP)
- Guardian’s Allowance
- Attendance Allowance
- Pension Credit
- Winter Fuel Payments and Christmas Bonus
- free TV licence for over-75s
- lump-sum bereavement payments
- Maternity Allowance
- Industrial Injuries Benefit
- Severe Disablement Allowance
- Universal Credit
source https://www.gov.uk/income-tax/taxfree-and-taxable-state-benefits
