# Is Sick pay Benefit taxed



## Town (30 Jun 2011)

A friend of mine was receiving 188 Euro from SW while he was on sick leave from work. It has now dropped to 150 Euro this week. Is this being taxed at 20% or is there some other reason for the reduction. He is claiming for about 8 weeks now.


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## gipimann (30 Jun 2011)

Illness Benefit is taxable income, but it's not taxed directly (as in money deducted from the weekly payment).  

There could be several reasons why his payment reduced - for example, the most recent medical certificate might not have covered him for a full week.

He should contact Illness Benefit Section to find out why the money has reduced.


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## PetPal (30 Jun 2011)

Town said:


> A friend of mine was receiving 188 Euro from SW while he was on sick leave from work. It has now dropped to 150 Euro this week. Is this being taxed at 20% or is there some other reason for the reduction. He is claiming for about 8 weeks now.


 
I'm fairly sure that this is due to the fact that there is a fuel allowance included in the payment during certain months of the year, and then during the summer months it is excluded.  My husband's money has dropped by the same amount and he's on disability.


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## gipimann (30 Jun 2011)

There is no fuel allowance on Illness Benefit, so that doesn't explain the reduction.


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## Black Sheep (1 Jul 2011)

Illness Benefit is taxable and needs to be included in your tax return. However the first 6 weeks of Benefit in each tax year is not taxed, so if you were on Illness benefit for 26 weeks only 20 weeks would be taxed.

It's a good idea to get a Cert. of taxable Illness from SW as proof of the income received


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## Town (5 Jul 2011)

Just to let you know that SW made an error on the dates and deducted the amount incorrectly.


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