Tax Credits Renewal - confused

supermonkey

Hi all,

I'm a bit confused on the renewal this year.

1.1 asks if either of us were receiving income based JSA. Well one of us has been on JSA since end of April 09, the first 6 months contribution based, and income based ever since I think. Since it hasn't been for the whole of the award period, I have left this blank.

2.1 asks about Taxable Benefits. The notes list contribution based JSA which was claimed during the period as above. How do I work out how much contribution based JSA was received?

2.2 Income Details. If contribution based JSA is shown in 2.1, I guess income based is entered here under Income Details?

We also visited an attraction a few months ago who asked me to complete a gift aid form. We had paid with clubcard vouchers and it was only £10s worth. I am self employed and a bit confused as to how this affects tax credits. Kinda wishing I hadn't done it now as it just complicates things.

Thanks!

TaxCreditHelp

Hi!

1.1) Income Based JSA is not taxable so Tax Credit Office (TCO) do not need to know the amount you received, only the dates you received it from and until.

2.1) Contributions Based JSA is taxable and TCO need to know how much you received in total from 06/04/09 to 05/04/10. If you don't know how much you received Job Centre Plus can assist with this but you should received a P60 subsitute with the total amount of Taxable Social Security Benefits.

2.2) Any Taxable Social Security Benefits should be recorded on your renewal under this heading.

There is an income calculation sheet in your renewal pack which should cover how Gift Aid donations, etc fit in to your total income declaration but there is a £300 disregard on 'Other Income' so it may fall under that.

supermonkey

Thanks for your help.

1.1 - TCO don't ask for dates. Just asks if we were receiving it for the entire period.

2.1 I will visit the Job Centre, but I have checked all my paperwork and nothing shows the split.

2.2 Sorry still very confused. If Income based JSA is not taxable, then this shouldn't go here? And i Contribution based is taxable then it should?

craig_dufc

If you received income based JSAfor the whole period (IE April 09 to April 10) then you tick the box saying JSA.

If you didnt receive it for the WHOLE period, eg only started claiming in May or whatever, you don't tick it.

If it's contributions based, they need to know the amount you received and this has to be put in the 'Taxable Social Security Benefits' box, without ticking the JSA box if that makes sense!

supermonkey

Hi,

Well I think I am ok now for 1.1 (won't tick) & 2.1 (will get amount of contribution based JSA from job centre).

Update 22/05 - I received a letter from the job centre confiming the amount of income based JSA. I had actually asked for the amount of contribution based. Called them back and was told they can only give me a total figure, not a split. So why does the letter state income based if they cannot give me that info? Anyway, rant over! The figure is the same as one quoted on previous correspondance from them which also stated how much of it was taxable. Why it doesn't say clearly "contribution based" I don't know, but I will use this figure for 2.1.

can anyone just confirm that SMI is included in the total amount of JSA? I've quickly muliplied my weekly JSA by the number of weeks I got it,& added it to the amount of SMI multiplied by the number of months received and it comes to roughly the above figure.

I am still unsure as to what to put in 2.2. It makes sense to me that JSA is not included here, after all it is about income from employment. Having looked at the notes, it does not make any mention of including JSA here (either income or contribution based). Having said that, I am somewhat surprised that they require the amount of contribution based JSA in 2.1 but are not interested in income based...

Thanks again

supermonkey

Hi again,

Sorry to bump the thread, but would just feel re-assured if someone could confirm my understanding above is all correct!

Thanks

Valli

re the gift aid - as I understood it you can only make Gift Aid declarations if you PAY income tax on earnings. It should have no effect on your TAx Credits at all. Gift Aid Link
If you are a tax payer the charity claims back the tax you paid on your earnings - well the part of your earnings you handed over to the charity. It is of no financial benefit to the payer at all. It is not, therefore, to be included as income because you don't get it the charity does.

TaxCreditHelp

Sorry but I'm unsure what SMI is (it may be too early for my brain to function).

It is correct that Contributions Based JSA is taxable and it recorded as "Taxable Social Security Benefits". Income Based is not taxable and Tax Credit Office do not need to know the amount you received, just the dates you were on it.

And as said above, if you were on Income Based Job Seekers Allowance for the full year then you should tick the 'JSA' box, but not if you were on it for less than the full year and if you were on Contributions Based.

hope this helps.

supermonkey

Hi and thanks again for the replies.

1.1 I won't tick since it wasn't quite the whole of the year on JSA and part was income, part contribution based anyway.

2.1 Taxable Social Security Benefits. Will enter the amount of taxable JSA (contribution based) as provided by the Job Centre.

2.2 Income Details. Just any earnings while not on JSA. Will not put either JSA figure.

SMI - Support for Morgtage Interest which is part of JSA.

Giftaid - Having looked at the link, we wouldn't have paid enough tax to qualify and therefore HMRC would want us to cover the amount they have paid to the charity. I will contact the charity and ask if they can stop the form.

Thanks!

supermonkey

can anyone advise? thanks

jamieukonline

supermonkey wrote: »

can anyone advise? thanks

It does seem more confusing this year.

I will leave confirming to the experts but I do understand why havn't you phoned them - always keep things in writing with tax credits.