Tax Credit Renewal Question - Taxable benefits??

MrsBartolozzi

Hi there. This is my first year of having to fill in the TC form and not just tick "no change" and I'm a bit confused.

For approx 6 months last tax year I was on IB JSA and then the remainder of the year I was working. When I received my P45 from JC it said I had £1766 Taxable Benefit during that period. I was going to put this on the TC form, but it only mentions CB JSA on the form as being taxable? What do I do?

It really makes no odds to my claim in that added together my income was less than £5k, but I don't want to put the wrong amount and them launch an investigation thinking I'd told them something wrong before IYKWIM.

PS it was definately IB JSA as I didn't qualify for CB JSA.

TIA.:)

MrsBartolozzi

ok, an update:

I've just phoned CT helpline and they wouldn't accept that IB JSA could be taxable and won't let me renew because of this. Apparently IB JSA is not taxable. I was advised to phone the JC helpline, but they are not open until Monday. Is there something I can do before then?

zagfles

The confusion comes about because income tax and tax credits aren't consistent. IB JSA is taxable, or at least some of it is. See http://www.turn2us.org.uk/information__resources/benefits/income-based_jsa.aspx

However IB JSA is disregarded for tax credits, so you don't need to declare it. See http://www.hmrc.gov.uk/manuals/tcmanual/TCM0120040.htm

MrsBartolozzi

Ah right, thanks. So if I'd earned more (say £10k from my job) I'd have to pay tax on it (£11766 = £10k wage + JSA) and tell the tax man; but as far as Tax credits are concerned I don't have to declare the JSA money because it was IB.
Is that right?
Thanks.