JSA and Income Tax Refund - What Do I Need to Do?

NightFox

Hi, first post on here and I have read a few of the similar threads, but I'm still not clear...

I've been on JSA since November (contributions based originally, now income based). All along I've known that I'd be due a sizeable income tax refund at the end of the tax year. Both HMRC and my local Jobcentre told me that I didn't need to do anything, this would all be done through the Jobcentre as they are effectively my employer for PAYE purposes.

Once the new tax year started, I was told that 'the system' automatically processed any JSA income tax refunds in alphabetical order, and I could probably expect something by about the middle of May (I'm a "J" for Jones). However, that time has come and gone and now I'm getting conflicting information. When I asked again in my local Jobcentre, they just looked at me blankly and said I would need to contact the local Benefit Centre. I phoned them and the call centre was at first adamant that it was nothing to do with them and that I needed to apply directly to HMRC (even though the HMRC web pages say it is done through the benefits system on my behalf). Eventually I convinced the person to speak to their supervisor and they came back very helpfully saying that 'It's done automatically but we have no way of knowing when it will happen so I can't help you' and put the phone down on me.

So I've been holding out, with a lot hanging on getting this money by the middle of May. But now suddenly I find myself having no idea when, or even if anything is actually happening about my refund. I have just received my P60U so could, in theory apply direct to HMRC for my refund. However, HMRC specifically say that it will be processed through the benefits system and the last thing I want to do is anything that could slow things down.

Please, can anyone give me any advice as to what I need to do to find out if my tax refund is being processed and when I can expect to receive anything?

MCGONIS

Hi. I can tell you that when you make a claim to benefit, if you give the benefit office your P45, then the tax refund will come automatically.

The refund happens at the end of the tax year or when you close your claim, whichever is sooner.

If you did not hand in the P45 form from your last employer then you have to deal directly with HMRC.

If you did supply the Jobcentre with the P45 and you have not received the automatic refund, then there is a problem somehow.

You will need to ask the person at the JobcentrePlus helpline for a call back from someone who knows about this sort of thing.

They have a target of 3 or 4 hours to respond to your request. If this does not happen, ask for a manager.

This system that the Labour government introduced is a disgrace. No one in an JobcentrePlus office can deal with your enquiry. You have to go and telephone an 0845 number. Except the 0845 staff cannot deal with your enquiry, they have to send an email to the benefit centre.

The staff at benefit centre are inundated with emails and don't manage to call everyone timeously.

So that means the whole process starts again - more calls, more emails and the simplest enquiry becomes a nightmare for everyone involved.

It's a disgrace -JobcentrePlus is so hell bent on making sure staff meet targets about call handling times or getting people into work/to sign off, that people like you who need an answer to a simple question, get nothing but aggrivation and misinformation.

Sorry to be a bit negative but if that agency was managed properly and the people employed there, could actually get on with helping customers, instead of trying to meet pointless targets, then you would not have to be on here asking things.

Can you le me know how you get on?

McKneff

What were you doing workwise between April 10 and November 10

What was your whole income for the year including JSA

NightFox

Thanks very much for both of your answers.

First, I have to say that never having been exposed to the benefits system before, it's been a real shock. I can't believe what an unfair, complicated, frustrating and confusing system it is. I consider myself a pretty intelligent and determined person, but there's a couple of entitlements I've simply given up trying to get simply because it just got so frustrating at the lack of information, going round in circles and trying to get Benefits Centre staff to actually listen and respond to me.

Anyway, to answer your questions:

I did provide the Jobcentre with my P45 when I first went on benefits.

I was working between April 2010 and 20th August 2010. Unemployed since then, though only started claiming in November 2010.

P45 pay = 35337.07
P45 tax = 9938.13
P60U pay & taxable benefit = 2022.42

So by my reckoning HMRC owe me about £3700. One thing I have just noticed though is that my P60U only shows my benefits - should it also show my previous pay/tax paid carried forward from my P45?

MCGONIS

Hi. In that case I would be speaking to a benefit officer for advice. They are probably miles away from you and you will not hear from them for days.

You just need to telephone the 0845 to start this. There is a problem somewhere with paperwork I would say.

Ask them - although this is a typical example of what you MAY get. But lets say You live in Southampton, your calls are answered in Glasgow. They send your details to Belfast. They then pass it onto Bristol who refer it to someone in Milton Keynes and then will get back to you. Maybe they have the answer. I think what they will tell you is Worthing that really deal with it, but your enquiry has been sent to Newcastle as Worthing / Hastings has closed. So you are left wondering!

That's only an example for someone in Hampshire. But if you live elsewhere, then your enqiry will do a similar process. I doubt you will get a answer this time next week.

Again I work there, so am being real. Not someone who has had a bed experience.

Not sure if that helps?

Can you please keep me updated.

NightFox

OK, you asked for me to keep you updated...

After just going round in circles with the DWP call centre, I decided to try the other approach and rang HMRC. Contrary to what I was expecting, they couldn't have been more helpful and I learned more in 10 minutes talking to them than I have over the last 6 months with the Jobcentre/Benefits Centre. My understanding of the system is now this:

When the tax year ends, DWP start sending out P60Us to those on JSA, a process which they do in alphabetical order and which takes them between 2-3 months to complete. Once they've sent out yours (I got mine mid/end May), they also send a copy to HMRC, but they send the HMRC one about 2-3 weeks later.

In about the middle of June, HMRC 'push the button' to calculate income tax refunds for all the P60Us they've received from DWP at that point. If DWP haven't got round to sending yours through to them, you have to wait until HMRC do it again in the middle of November. It's not like those of us on JSA are in any hurry for any tax refunds due is it?

So, basically, if you let the system do its thing it's luck of the draw (affected by what your surname is) as to whether you get any tax refund in late June or have to wait till late November. HOWEVER, the HMRC call centre person I was talking to said that I could send my P60U (the original as sent to me by DWP) to them with a note asking them to calculate my tax refund from it, and they would use that to calculate and issue my refund rather than wait for DWP to send them a copy directly. Processing time is about 4 weeks I'm told, but this means at least I now know something is happening and should expect my refund in 2-3 weeks time.

So, my advice at this time is once you get your P60U from DWP, send it straight off to HMRC yourself to get the refund process rolling. Wait for DWP to do what they're meant to and you might not see anything till November. I won't provide the HMRC address here in case it changes, but apparently its important to clearly mark your envelope "INCOME TAX REFUND" otherwise it delays it by a couple of weeks!