Sign on?

outgoingzero

Hi everyone


Hope I'm posting to the right place.


Well, I’m now a week off my last day at work after being made redundant. I’ve been thinking about whether to sign on for JSA or not, and as I’ve never claimed any benefits before, I wondered if anyone had any advice:

- I’ll have around £18K in savings after redundancy payment
- I should be entitled to some tax back in April (£1K – 1.5K?)

I’m wondering if I should just live off savings for a while rather than claim benefit. I understand I’d get contribution based JSA for the first 6 months, but then my level of savings would prevent any further benefits (if I haven’t got a job by then). The JSA I would get would affect my tax rebate, so I wonder if it might be best to just live off savings for a while, and if I haven’t got a job when my savings fall to less than £6K consider signing on then?

I reckon if I was careful I could make it 18 months or so on the first £12K of savings without having to ask for anything from the state. Would I be able to sign on then if needed, or would they insist on me signing on straight away after redundancy.


If I’m being stupid due to ignorance of the system, please tell me.

Thanks

molerat

Claim. a) you are entitled. b) your NI will be credited. c) it will be hard work convincing HMRC to pay back the tax immediately if you are intending to work again this FY.

outgoingzero

Thanks,

I'm happy to wait until April to claim the tax back.

Also I've paid loads of NI this FY so I assume I don't need any more for this year to count NI wise (which I how I think it works?).

McKneff

outgoingzero wrote: »

Thanks,

I'm happy to wait until April to claim the tax back.

Also I've paid loads of NI this FY so I assume I don't need any more for this year to count NI wise (which I how I think it works?).

It isnt how it works.

The amount of NI you pay is irrelevant, its the fact that you have paid it. You need your NI credit, this not only goes towards your state pension but it also impacts on any benefit you may need to claim in 2 years time. You never know when you are going to be sick or out of work, The DWP will turn down your claim because you havent got the credits for the qualifying years. If you dont want the money, I'll send you my bank details, you can transfer it on.:D

You are entitled to JSA, claim it, its madness to counter it against your tax rebate, I dont understand your reasoning.

Hope you find a job soon. Dont focus on a tax rebate, it's what you seem to be doing.

outgoingzero

Thanks for the replies.

In the event I was getting JSA until April (i.e. 6 months which I think would be the maximum length of any benefit for me), would the additional £1690 of income affect my tax rebate (looking at my final salary slip I think this would be £3600) as though it were just any type of income - or does the fact it's JSA mean it has a different impact?

michaelvintner

Sign on. Do not live off your savings as at the moment there is no need to.

As you said you can get contribution based for 6 Months. Hopefully this will be long enough to find another job.

custardy

as said sign on
also do you have mortgage insurance?

Voyager2002

outgoingzero wrote: »

Thanks for the replies.

In the event I was getting JSA until April (i.e. 6 months which I think would be the maximum length of any benefit for me), would the additional £1690 of income affect my tax rebate (looking at my final salary slip I think this would be £3600) as though it were just any type of income - or does the fact it's JSA mean it has a different impact?

As I understand the tax situation, your income from JSA will be taxed, and you pay the tax as a reduction in your tax refund. So for every 100 pounds that they give you now, your tax refund will be reduced by about 25 pounds. I would not complain.

As for means-tested benefits (obviously income-based JSA after six months, but also Council Tax benefit and others): once your savings fall below 15,000 pounds (maybe that level has been increased) you can claim, but the amount they give you is reduced because of your savings. It is only when your savings fall below about 5,000 that you receive the benefits in full.

In addition, a range of support services and training opportunities are available through your Jobcentre. Look, and you might find something useful: for example, my Jobcentre offers free part-time training in Accounting leading towards the AAT qualification.

outgoingzero

Thanks again for the replies. I knew a few years off my job would end and I'd struggle to get another one, so I put everything into paying the mortgage off which I did last year.

If I'm honest with myself and at the risk of sounding a little pathetic, I think my reluctance is that I've never signed on before, and it's not really a world I want to deal with. I have a restrictive health issue with my eyes that probably won't be acknowledged by the Job Centre and don't really want to be forced into jobs I don't think I can physically cope with.

I guess I'm trying to talk myself into the conclusion that I won't really be gaining much income from JSA, so might as well use my own savings and avoid the situation

Doesn't sound very impressive I admit, but I think deep down that's how I feel.

If theoretically I used my savings and in 3 years I had less that £6000 but hadn't paid NI for 3 years, would that prevent me receiving the other type of JSA (the one that is for people without any money) at that point in time?

I completely understand if I'm coming over a whiny fool here. I guess I'm just trying to formulate a plan for my future.

Voyager2002

outgoingzero wrote: »

Thanks again for the replies. I knew a few years off my job would end and I'd struggle to get another one, so I put everything into paying the mortgage off which I did last year.

If I'm honest with myself and at the risk of sounding a little pathetic, I think my reluctance is that I've never signed on before, and it's not really a world I want to deal with. I have a restrictive health issue with my eyes that probably won't be acknowledged by the Job Centre and don't really want to be forced into jobs I don't think I can physically cope with.

I guess I'm trying to talk myself into the conclusion that I won't really be gaining much income from JSA, so might as well use my own savings and avoid the situation

Doesn't sound very impressive I admit, but I think deep down that's how I feel.

If theoretically I used my savings and in 3 years I had less that £6000 but hadn't paid NI for 3 years, would that prevent me receiving the other type of JSA (the one that is for people without any money) at that point in time?

I completely understand if I'm coming over a whiny fool here. I guess I'm just trying to formulate a plan for my future.

I can understand your reluctance, but perhaps that is a luxury that you can no longer afford? In any event, the reality is nothing like as bad as you imagine it.

You mention worries about being forced into a job for which you are not physically suitable, but the only coercion they can ever use is to withdraw benefit. So the worst they could do would be to put you into the position you are now in. And that is not very likely: I think it clear that you would continue to put a lot of time and energy into looking for suitable work, and so long as that is the case you would find them supportive.

Someone mentioned that so long as you are signing on you receive credits for your NI, and that this is important. I understand that their main importance is that they build your entitlement to a state pension: I don't think they make any difference so far as JSA is concerned. However, if you don't sign on then you could end up with a lot of headaches with government departments such as tax and NI, and the eventual process of claiming income-based JSA would end up being a good deal more complicated than otherwise. The standard assumption is that no-one lives without an income, and if you are neither employed nor signing on then you must be running your own business, and probably avoiding lots of tax! Unfair I know, but you run the risk of running into that further down the line.

gastronomix

If you have more than 16k you will be ineligible for most benefits if not all. Your mortgage/rent wont get paid for the first 3 months anyhow and you wouldnt qualify for council tax relief.
I'd suggest not bothering until your savings are at least below 16k and even then if you can do with out it for a while longer. If youve never signed on you may not appreciate what a demeaning and intrusive process it can be. Re above point, as long as you can say that you have been living off savings I doubt very much if you will be questioned any further.