Taxable JSA, do I owe anything?

Herself

Hello!

I started a new job last week & signed off JSA after being unemployed for a year (hurrah!).

I currently work through an agency so I filled out a P46 with them and gave them the P45 that the Job Centre sent me - the tax code is 747L.
The Job Centre have sent me a letter to say my JSA is a taxable income and will be added to my earnings for this tax year.

The letter says they can't check my tax position because of a lack of tax information and they've notified the IR. I'm worried now that I owe tax, although I was sure weekly JSA payments aren't enough to accrue it. Can anyone confirm/advise? Many thanks

LadyMissA

Herself wrote: »

Hello!

I started a new job last week & signed off JSA after being unemployed for a year (hurrah!).

I currently work through an agency so I filled out a P46 with them and gave them the P45 that the Job Centre sent me - the tax code is 747L.
The Job Centre have sent me a letter to say my JSA is a taxable income and will be added to my earnings for this tax year.

The letter says they can't check my tax position because of a lack of tax information and they've notified the IR. I'm worried now that I owe tax, although I was sure weekly JSA payments aren't enough to accrue it. Can anyone confirm/advise? Many thanks

All it means is on the P45 it shows the JSA you have received in this tax year to date. 747L is your tax code for this year and IF there is a chance you are going to be paid in the 2011/2012 tax year you will pay no tax as the JSA for a year is less than the 747L tax code. You don't pay tax on JSA all the letter means is that the cumulative year figure will include this.

good luck for the job

LittleVoice

Herself wrote: »

Hello!

I started a new job last week & signed off JSA after being unemployed for a year (hurrah!).

I currently work through an agency so I filled out a P46 with them and gave them the P45 that the Job Centre sent me - the tax code is 747L.
The Job Centre have sent me a letter to say my JSA is a taxable income and will be added to my earnings for this tax year.

The letter says they can't check my tax position because of a lack of tax information and they've notified the IR. I'm worried now that I owe tax, although I was sure weekly JSA payments aren't enough to accrue it. Can anyone confirm/advise? Many thanks

Though weekly rates of JSA would not in themselves be enough for you to have to pay tax, those payments would be added to your earnings in your employment in the current tax year. Unless you have found a very high-paying job, it is very unlikely that you would have earned enough to be paying any income tax - next week's payment (assuming you are paid weekly in arrears on a Friday) will be the last in the current year.

Herself

LittleVoice wrote: »

Though weekly rates of JSA would not in themselves be enough for you to have to pay tax, those payments would be added to your earnings in your employment in the current tax year. Unless you have found a very high-paying job, it is very unlikely that you would have earned enough to be paying any income tax - next week's payment (assuming you are paid weekly in arrears on a Friday) will be the last in the current year.

Yep that's exactly it, I get my first payment next Friday. Thanks for the clarification!