The recession, benefits, the safety net, and the learning curve

lostinrates

Max_Headroom wrote: »

Thanks Viv. Life seems to have changed a lot in the last six months. In a good way, but in a very time consuming way. Sadly I just don't get to the forums like I did.

I wouldn't be too sad.....life wins over forums, especially if its Good busy .

Max_Headroom_3

Very good point indeedy!

pawpurrs

Glad to hear your busy, why are they wanting it back? What was the reason stated?

JustKeepSwimming_2

Shocking - you couldn't make it up.

Still loving the blog! You have a real talent for writing & I hope you will carry on with it.

PasturesNew

pawpurrs wrote: »

Glad to hear your busy, why are they wanting it back? What was the reason stated?

What Max means is that income from (some?) benefits counts towards your annual taxable income.

So, if in one tax year you lose your job, it would go like this:
April-September, have a job, earn £12k (annual wage £24k)
Oct-Dec, no job, earn JSA at £64/week = £850
Jan-Mar, new job, earn £3k (annual wage £12k)

Yearly total income = £12k + £850 + £3k = £15,850.

So across the tax year you'd be taxed on £15,850, not the £15k "earnings", so at 20% tax you'd have to "give back" £170 in tax

However, if your JSA earnt was Jan-Mar you'd probably get a tax rebate.