Didn't know Jobseekers was taxable

hubballi

I have come off Jobseekers and decided to go full time self employed. I have had a letter from Jobseekers stating that the allowance I have received can count as taxable income.

Is this correct ?

Oldernotwiser

Yes. From HMRC "jobseeker's allowance (JSA) is taxable regardless of whether someone is entitled to contribution based JSA or income based JSA."

FatAndy

This might not be an issue unless your business really takes off quickly.

Rounding off a bit if your JSA was £64 per week and given that the current 'normal persons' tax code of 647L allows you to earn £124 per week before tax you've 'banked' £60 of tax allowance for each week between 6th April 2009 and whenever you became self-employed. That unused allowance is on top of the £124 per week you'll continue to get for the rest of the current tax year.

Of course this depends on your personal situation, eg any other income, when you commenced trading as self employed, etc.

CCFC_80

hubballi wrote: »

I have come off Jobseekers and decided to go full time self employed. I have had a letter from Jobseekers stating that the allowance I have received can count as taxable income.

Is this correct ?

Yes, introduced by the tory government shortly after they had won the 1979 general election and never recinded by the now labour government.