Tax refund but had JSA

ministrymason

I started work during a tax year and im due a tax rebate of £500. Before starting my new job I claimed JSA for the total of £350. Will they deduct this amount from my tax rebate so ill get £150? Thanks

xylophone

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/IncomeTax/GettingyourIncomeTaxright/DG_078352

ministrymason

"When you stop claiming jobseeker’s allowance to start work for a new employer, DWP will check the amount of tax paid against your taxable income including the amount of jobseeker’s allowance you've received. They will refund you any overpayment and issue a P45(U) which you should give to your new employer."


I still don't understand. I started work and I was sent a P45 8 months ago. I'm due a tax rebate because i started work during a tax year. Will the amount I received JSA be deducted from it?

00ec25

who sent you the P45 - was it the DWP?

assuming all the £350 JSA relates to the last tax year (ie April 11 to April 12) then 350 will be added to any other earnings you had between thiose dates and that total is the total taxable income for that year and is the figure used to calculate how much tax you should have paid for the entire year compared to how much you actually paid - the difference will be the amount of your refund so no it is not as simple as deducting 350 from your refund

in fact if the P45 was from DWP and therefore includes your JSA payment AND you handed this P45 to your new employer before April 12 AND your new employer operated the correct tax code then you should already have had the tax refund in your first wage packet. - note there are a lot of assumptions in the previous sentence!

sweetietot

So JSA was paid earlier in the year and you received £350, then you started at your employer? Did you give the P45 from DWP/JSA to the employer? What deos your P60 show?

ministrymason

Ok i understand. Ill get most of the money back then. They will add the £350 to what ive earned this year say £10k. Then work out from £10350 what tax im due back. I received the P45 from DWP after I started my new job so i didn't give it to my employer.