Just got back into work - what tax should I be paying?

ashnojutsu

Hello, I have found a job after being unemployed for 24 months. I was claiming JSA for most of that period, and have been in full-time employment since december 2008. I have just received a letter from the job centre saying that my total allowance paid to me was £2046 (I got £120 every two weeks) until 30th november 2008 for tax year 2009 and it would be taxable and will be included in tax calculations. Will i end up paying more N.I or income tax becuase of this?

Also, since I was long-term unemployed, can I claim any tax reliefs or credits?

ali_p_4

No you will be issued with a current code from tax office. Based on this will be determined from what you earn for the remainder of this tax year over your allowance as to how much tax you will pay it could work out to your benefit instead as your present contribution to that allowance is probably considerably less than if you had been working. That is how it has worked for me anyway.

mrsmyagi

You will get a personal allowance for the 2008/09 tax year which is the amount you can earn before you pay tax. The JSA you have been paid will use up some of this allowance so if you then earn enough on top with your new job to go over the allowance (about £6k) then you will pay tax on it.

There are no reliefs or credits you can claim.