Tax Years or Benefit Years - JSA

robert-uk

Hi

It looks like I am about to lose my job as a bus driver as I have acquired 9 points on my licence.

I cannot claim IB JSA as my wife works and earns too much to make it worthwhile.

So, I am looking to claim for CB JSA.

BUT, Im unsure what Tax Years are taken into account for NI purposes. I just called the JCP and was told it was Benefit Years and not Tax Years which are used to decide - this has confused me.

In the Tax Year 2007/8 I only earned £3,150
In the Tax Year 2008/9 I earned approx £17,500
So far in Tax Year 2009/10 I have earned approx £13,000

The say that Benefit Years run from Jan 3rd each year.

So, do they base a decision on Tax Years or Benefit Years?

What I basically need to know is.....

1) Is it even worth me trying to claim CB JSA now as I believe the income (lack of NI conts) in 07/08 would void my claim.

2) If I waited until April 6th 2010, would they then be using the tax years 08/09 and 09/10. If so, I would think that I'd get it.

3) Any idea why they refered to Benefit Years and how does that affect any claim I might make?

Any thoughts please?

PS Ive got a long booked holiday from Dec 29th to Feb 7th so the earliest I would claim would be Feb 8th 2010 anyway.

dookar

It's the two full tax years preceding the benefit year in which the claim is made.

Benefit year 09/10

Tax years 06/07 & 07/08

Oh, and you are liable to receive a sanction on the claim

dmg24

If OP is not claiming until Feb 10, the relevant years would be 07/08 and 08/09.

dookar

dmg24 wrote: »

If OP is not claiming until Feb 10, the relevant years would be 07/08 and 08/09.

Indeed missed that bit, apologies

robert-uk

Ok, so if I claim in Feb it is 07/08 and 08/09.

If that's the case then my low income in 07/08 would scupper that plan.

Is it 08/09 and 09/10 if I dont claim until the 10/11 tax year - ie after april 6th 2010

thanks

dookar

robert-uk wrote: »

Ok, so if I claim in Feb it is 07/08 and 08/09.

If that's the case then my low income in 07/08 would scupper that plan.

Is it 08/09 and 09/10 if I dont claim until the 10/11 tax year - ie after april 6th 2010

thanks

no. the benefit yea in which April 2010 falls start January 2010, the last full tax year prior to that is 08/09 so it would be that and the preceding year 07/08.

If you claim January 2011 then the years would 09/10 and 08/09

I'm confusing myself now...

robert-uk

Am I able to pay any shortfall in NI for the year 2007/08 to enable me to claim CB JSA - and would making the claim in Feb or mid-April make any difference?

Thanks


EDIT:

Ive just looked at the online claim for CB JSA and it states......

There are 2 "Contribution conditions" which are detailed below:

To satisfy the First Contribution Condition, the customer must have: • paid Class 1 contributions on earnings of at least £2100 in either of the last two Relevant Income Tax Years 06/07 or 07/08

To satisfy the Second Contribution Condition, the customer must have: • a combination of paid Class 1 contributions on earnings and / or awarded credits of at least £4200 in both 06/07 and 07/08



It is not clear if it is saying your must have earned at least £2,100 and paid NI or that the NI must be at least £2,100?

NASA_2

You cannot pay the shortfall and be entitled to JSA(C) as I understand it.

The benefit year doesnt start on the 3rd of January each year BTW - it starts on the first sunday of January and runs to the first saturday of the follwing January. So next year it is the 3rd but it wont be the year after.

stazi

The start of any new benefit year is from the first Sunday in January. in 2010, this is on or after 3/1/10.

To be entitled to either JSA or ESA in 2010 you must satisfied both the 1st and 2nd contribution conditions.
1st CC- Earnings of at least £2175 on which NIC was paid or treated as paid
2nd CC - Earnings of at least £4350 for 07/08 and £4500 for 08/09 on which NIC was paid and/or treated as paid.

The 2nd CC earnings can be made up as wages and/or credits awarded for past periods of caring/unemployment or sickness if the relevant benefits were claimed.

As the OP has said their earnings in 07/08 were only £3150, unless some earnings/credits are missing, they are not going to qualify for JSA(C).