Offsetting JSA against overpaid tax?

baffledsalmon

Hi,
Hoping someone can help! As of tax year 09/10 I was at Uni until October 2009 and then I couldn't find a job for a few months. After eating up my savings, I eventually signed on to JSA which I received for about a month before I got a job.
My tax rebate is just going through at the moment, which should be around £700, but what happens about the couple of hundred I receive in JSA as you're not taxed on that? Say I received £200 in JSA, will the amount of tax I should have paid on that £200 be deducted from my £700, or will the total £200 be deducted?
Hope that makes sense!

mrkbrrws

The JSA is added to your other income and the tax is worked out on the total. You will not have the £200 in your example taken out of the refund.

CLAPTON

mrkrrws is correct
but why do you say the tax rebate should be 700?

baffledsalmon

mrkbrrws wrote: »

The JSA is added to your other income and the tax is worked out on the total. You will not have the £200 in your example taken out of the refund.

Ok, that's great! From memory my total earnings didn't exceed the personal allowance (or at least not by much) as I was only working for 3 months of the tax year so the £200 won't have much if any effect - excellent!

baffledsalmon

CLAPTON wrote: »

mrkrrws is correct
but why do you say the tax rebate should be 700?

I worked out my total earnings and how much tax I paid - was around £700 overpayment