Question about Tax

eternal_sunshine

Hi,
I'm completely clueless about tax so was wondering if anyone could help (apologies if this is in the wrong place)

I was on JSA from july 2008-begining of march 2009 and I received a letter yesterday from the SSA saying that my JSA could be counted as taxable income and that if I was owed money they would give me it back, and if I owed them money, they would tell me how it would be collected. This really confused me though-does this mean that because I've started a job I have to pay tax on the money I got whilst on JSA? Does this mean that in the first few months of my job I will be taxed more?

Also, I read that if you're out of a job for a while, you tend to get put on an emergency tax code-is this related to paying tax on JSA or are you just put on this while they work out your correct code, and then you are re-embursed later on if you were overtaxed?

Sorry if I haven't expressed myself too well, I'm just completely confused!

thanks

fengirl_2

Although your JSA is taxable, you are unlikely to actually be liable to tax on it, unless you have other income. The reason is that JSA is about £60pw and you can earn £116 pw before you pay tax.
Did the JC send you a P45 with the letter? If so, you need to give it to your new employer. If not, you need to ask him for a form P46 which you sign to say this is your only job. If you are being paid in March you will be on E code without the P45, but you can reclaim this after the end of the tax year when you get your P60 from your employer in April.
From April, you will be on a normal, cumulative code which ensures the correct tax is deducted.

eternal_sunshine

They did send me a P45 but I had already filled out a P46 for my currently employer as I had no P45 at this point. My first pay will be in the first few days of April, so does this mean I will probably be taxed correctly from the beginning?

thanks for explaining that to be by the way

Savvy_Sue

eternal_sunshine wrote: »

They did send me a P45 but I had already filled out a P46 for my currently employer as I had no P45 at this point. My first pay will be in the first few days of April, so does this mean I will probably be taxed correctly from the beginning?

Possibly, but I would send in your P45 anyway, as that will then show your employer what you've earned in the current tax year, and how much tax has been deducted. All the P46 tells them is whether you have other employment / student loan etc, nothing 'personal', IYSWIM.

fengirl_2

if the JC did not refund your tax or if the week number shown on the P45 is week 51 or before, then you may be due a refund for this tax year. You will need to reclaim this from the tax office after the end of the tax year.