Paying tax on State benefits?

neil298

My son has just received a tax bill which includes money received while claiming unemployment benefits. He is employed by my husband and was laid off for about 8 weeks on and off when my husband didn't have enough roofing work for him. He was also sent a self-assessment form which he was told he had to fill in, even though my husband pays his PAYE and NI for him and has done for 4 years now. (He used to be self-employed.) I have never heard of anyone paying tax on their unemployment benefit and also think he shouldn't get a self-assessment form. Can you advise.

Thanks

Confused mum

dmg24

CB JSA is taxable. Anyone can be asked to fill in a self assessment, they are not difficult in your son's circumstances.

Hammyman

People don't pay tax on their JSA as the weekly payments aren't high enough however as mentioned it does count towards your taxable income.

ANYONE can be sent a self assessment form even if they've never been self employed. It is sometimes used to verify income details. If you are sent one though, you have to fill it in - you can't just say you don't need to because you're not self employed.

When your son got his P45 from the jobcenter when he signed off, did he give it to your husband and did your husband account for the income on it properly in the income tax return?