p45 and tax problem

goldie2k9

i left my last job in week 21 of the tax year, tax code is 0659L, up until then i had been paid £9132.74 and paid tax of £1293.40 my p45 from my employer showed these totals'
about a month later i signed on for contribution based jobseekers allowance and recieved £64.50 per week up until the 7th of march this year i then signed off and the p45 i got from them shows total pay - £10804.55 but then says total tax - £841.00 !!!
i really hope someone can explain this as i was sure i would be due a tax rebate , have the d.s.s made an error or what/
many thanks for any help forthcoming

ceeforcat

Are you saying that a refund of £452.40 was not made by the DSS? Check your final letter from them.

goldie2k9

final letter was just my p45 , no mention of a rebate or an explanation, time yet for it to be paid into my bank, im angry because when i got laid off i would have been due a rebate of around £750 and after 182 days of the jsa ive got nothing , surely they dont take money im due as well

John_Pierpoint

However these benefits are not taxed when you get given them, so the tax due has been taken off your potential rebate.
You are still quids in compared with not claiming JSA at all.

trevormax

The amount of tax paid there seems to be correct for the tax code you have.

£10,804 - £6,599 = £4,205 taxable income @ 20% = £841 tax due.

JSA is a taxable income. Normally though because it is such a small amount, there is no need to deduct any tax as it is below the PA threshold.

It is possible you have received a rebate of tax at some point while on JSA from DWP which will have been paid directly into your bank account. If you have online banking you might be able to go back a few months and check your statements to see if this is the case. Or it is possible DWP have only now issued a repayment of overpaid tax after you have signed off and this is taking a little longer to reach you than the P45 did. I would suggest you contact DWP and ask them as they would have something on their records.

John_Pierpoint

Hi goldie welcome to MSE and the hard world of unemployment - is this your first period of JSA?

Jobseeker's Allowance payments

Jobseeker's Allowance is paid at the end of every fortnight. It's paid straight into your bank or building society account. This is the best way to get your benefit because you can choose how and when to take your money out of your account.
If you get an occupational or personal pension, it may affect the amount of benefit you get.

Contribution-based Jobseeker's Allowance The maximum weekly rates are:
Age 16 - 25: £50.95
Age 25 or over: £64.30
Income-based Jobseeker's Allowance The maximum weekly rates are:
Single people, aged under 25: £50.95
Single people aged 25 or over: £64.30
Couples and civil partnerships (both aged 18 or over): £100.95
Lone parents (aged under 18): £50.95
Lone parents (aged 18 or over): £64.30
For income-based Jobseeker's Allowance, the amount may be less after your household income, pension and savings is taken into account.


So was that you:?

Was it 64.30 or 64.50?
I'm finding it difficult to make your numbers add up; but after your one month holiday you signed on for the job-hunt-don't-work-more-than-16-hours-a-week taxable payment; now you have signed off.?

Are you now employed, self employed or economically inactive?

While signed on you received £10804.55 - £9132.74 = £1671.81 in taxable benefit?
So assuming you don't get paid anything more before next Monday 6th April the first day of the next tax year, your annual income and tax paid will be:
£10804.55 total tax - £841.00
That looks about right to me.

chrisbur

goldie2k9 wrote: »

final letter was just my p45 , no mention of a rebate or an explanation, time yet for it to be paid into my bank, im angry because when i got laid off i would have been due a rebate of around £750 and after 182 days of the jsa ive got nothing , surely they dont take money im due as well

The tax rebate should come from the Jobcentre, I would assume payment would be into the same account as your benefit was paid. The P45 details are the correct tax for the code number you give as at the tax year end so it is possible that payment will not be made until after April 5. You need to contact the Job Centre to clarify when the payment is to be made.
When you were laid off you were not due a tax rebate of £750 that is the amount you would have been due at the tax year end April 5 assuming that you had no more taxable income between then and April 5, but this was not the case as you had job seekers allowance.
You say your code number is 659L which suggests that in your job you were getting a small tax allowance which was increasing your code a bit, the normal code is 647L.

goldie2k9

chrisbur wrote: »

The tax rebate should come from the Jobcentre, I would assume payment would be into the same account as your benefit was paid. The P45 details are the correct tax for the code number you give as at the tax year end so it is possible that payment will not be made until after April 5. You need to contact the Job Centre to clarify when the payment is to be made.
When you were laid off you were not due a tax rebate of £750 that is the amount you would have been due at the tax year end April 5 assuming that you had no more taxable income between then and April 5, but this was not the case as you had job seekers allowance.
You say your code number is 659L which suggests that in your job you were getting a small tax allowance which was increasing your code a bit, the normal code is 647L.

yup, i know that i could only get the £750 if i didnt have any more income but even after paying tax on my jsa i should still have a rebate of around £450 due, just have to wait and see , in answer to a couple of posters above, yes it was my first (and last) time on jsa and it was £64.30 i recieved for the duration of my time on it , it never deviated from this amount.
many thanks for the replies and your help

John_Pierpoint

Yes it was my first (and last) time on JSA - Congratulations on your retirement - JSA is a pretty tough system - did you see the TV program where some C list celebrities were given grotty flats (in the condition that the last tenants had left) plus a week's dole money and told to get on with it? There was only one who hit the ground running and she got into trouble for finding casual work in the local market, for more than 16 hours. ("Give us your JSA back" "But I've spent it").

Most people get code 647L, why was yours 659L (120 quid over basic)? That has given you a "rebate" of 25 quid more than the average punter.

So far we have got to 10804.55 minus 6590 equals 4214 @ 20% (1/5th) equals 842 so it looks like when you signed off, at that stage, you owed them a pound.

So what have you been doing between signing off and next Monday?

:idea:

goldie2k9

John_Pierpoint wrote: »

Yes it was my first (and last) time on JSA - Congratulations on your retirement - JSA is a pretty tough system - did you see the TV program where some C list celebrities were given grotty flats (in the condition that the last tenants had left) plus a week's dole money and told to get on with it? There was only one who hit the ground running and she got into trouble for finding casual work in the local market, for more than 16 hours. ("Give us your JSA back" "But I've spent it").

Most people get code 647L, why was yours 659L (120 quid over basic)? That has given you a "rebate" of 25 quid more than the average punter.

So far we have got to 10804.55 minus 6590 equals 4214 @ 20% (1/5th) equals 842 so it looks like when you signed off, at that stage, you owed them a pound.

So what have you been doing between signing off and next Monday?

:idea:

i got the different tax code because i worked for the royal mail for 20 years, not been doing anything since signing off, living on my redundancy payment (got ill health retirement) due to an accident at work, you are right that with their figures i would have owed them a pound however like i previously stated, i actually paid £12500 tax last year and it is this difference that i think should be a rebate (approx £450)

John_Pierpoint

Last year ended 365 days ago tonight. Why should you expect any money back from your debt to the tax man that you settled 364 days ago?

It is all linked to Spring time when the Virgin Mary first had congress with the Angel Gabriel.