Personal Allowance against JSA

Stephen_Leak

My income tax saga continues, and has just become surreal.

I lost my job on 28 September 2011. I've been receiving a pension from an old employer since 10 June 2010.

I expected my tax code and personal allowance to be transferred over to my pension. It wasn't.

Therefore, I'm paying tax on all of my pension. I calculate this was an extra £124.58 a month last tax year, and £134.97 a month this year.

I've finally managed to get through to HMRC, and I was told that this is because my PA has been transferred to my JSA. As far as they are concerned, I've applied for JSA, so that's where the allowance has to go, until I come off of JSA.

As far as I am concerned, there is a problem with this. Because of my pension, I don't get JSA.

The DWP, quite understandably, say that they can't take me off of JSA because I'm not on it.

I give up. I've managed so far, I'll just have to keep on managing.

xylophone

Write to your tax office (keep a copy). send the letter recorded delivery.

Savvy_Sue

Would you not get contributions based JSA for 6 months, before your pension would make you too well off to receive income based JSA?

jimmo

I can only imagine the frustration you are suffering but I think you have to identify the source of your problem.

How did HMRC “learn” that you applied for JSA?

If you told HMRC that you applied for JSA I can’t see any reason why HMRC cannot accept your word for it that you are receiving nothing. You have spoken to a “jobsworth“ at HMRC and you need to fight on.

If JobCentrePlus or whatever, has informed HMRC of your application then it is incumbent on JobCentrePlus to put the record straight and, as far as HMRC is concerned, there is no way that they will take your word for it.

Stephen_Leak

The HMRC already knew about the JSA. I presume they got my P45.

When I first signed on, I was asked about my financial situation and, as I expected, my savings were well above the JSA threshold, and my BT pension income was well above JSA.

The JSA people at the DWP, quite understandably, couldn't do anything, because I'm not on JSA.

When my next phone bill arrives next week, I can ring again. I don't have "free" daytime calls. That would cost £4.50 a month. So, I try to keep my daytime calls to below this. My last call to HMRC cost £3.50, so effectively that means one a month.

If I was paying the right tax, I could easily afford to make more calls to sort this out. Catch-22.

jem16

Stephen_Leak wrote: »

When my next phone bill arrives next week, I can ring again. I don't have "free" daytime calls. That would cost £4.50 a month. So, I try to keep my daytime calls to below this. My last call to HMRC cost £3.50, so effectively that means one a month.

Can you not phone on Saturday morning when 0845 is part of your inclusive minutes assuming you're with BT?

luvsbargins

First of all I would apply for a tax refund for the 2011-12 tax year. HMRC should already have a copy of the P45 from your job, and a copy of your P60 from your pension, but they will need from you the P60U from Jobcentre and the P11D from your old job (if you received any benefits in kind from them). They will then be in a position to review your tax affairs for 2011/12 and senfd you a P800 calculation and a cheque if you paid too much tax.

The Jobcetre will have advised HMRC when you 'signed on' because JSA is taxable income, but they will not have told HMRC how much JSA you receive. HMRC therefore think you get the standard rate of JSA of £71 per week. So whilst claiming a repayment for 2011-12 you need to advise them how much you actually receive, ie nill, and, ask that your personal allowance be set against your pension as you receive no JSA income. I assume you need the full personal allowance of £8105 to cover your pension for 2012-13.

This may be a problem when you leave JSA and find a job because all your allowances will have been set against your pension, and there will be no spare allowances to set against your wages, your wages would need to be taxed at basic rate 20% on code BR. If your new employer were to put you on the emergency code 810L X, you would be getting your allowances twice (at the pension and at the job), and you would end up owing HMRC tax. Therefore, if you are likely to be getting a job very soon, I would leave your tax code as it is, ie all allowances set against JSA and no allowances/code BR at occupational pension.

McKneff

Go to saynoto0870, use the 0161 no. BUT put 141 in front of the 0161 number, then they dont know where yo are ring from (its for overseas enquiries) I used it last time I rang them a couple of weeks ago. If they spot it, just tell them your phone is not allowed to make o845 calls.

getmore4less

Why did you sign on?

if you gave them a p45 then you are in the system, get a p45 back off them

Stephen_Leak

I signed on sometime in October 2011.

I can now see how this comedy of errors has come about, but my circumstances can't be that unusual these days.

I never thought that HMRC would be available on a Saturday, and my phone package (TalkTalk) does include weekend calls.

However, what could be the key to this puzzle has dropped through my letterbox. A P60U from "BA/DSS" showing all £0.00s (and a tax code of 747L X). A copy is on its way to HMRC.

I also received a new tax code for 2012/2013, the full 810L. So, if my pension provider gets their @r$e into gear, this part of things could be sorted at the end of the month. Even if it's the end of next month, the difference between what I owe them and what they owe me is ~£117 less.

Yes, I now know that, if and when I get another job, the tax code for this ought to be BR. As long as I get one PA on one income, OK. And my pension is now the permanent one.

suso

No need to phone HMRC if you know that all the information they need is the P60U

Action to take, :-

Photocopy the P60U, send the original to :-
HMRC
PAYE and Self Assessment
PO Box 1970
Liverpool
L75 1WX

Put a letter in asking for them to review your tax, Mark the top of the letter REPAYMENT CLAIM -, sit back you should receive a response by approx 8th / 15th June.

Don't mark it as a repayment claim and it will take approx a further 3 weeks.

I presume that a P60U has been sent because the DWP are paying your NI contributions, in effect your claim has not finished then.

HMRC will not receive the P60U until approx November.