Signing on for first time - delaying to new tax year

marlot

I'm about to be made redundant. Will be the first time ever, and as I'm coming up to 50, I guess it may take a little while to find something new.

Fortunately the payout will be OK (I hope) - but it will take me into 40% tax.

If I sign on now, I'll end up paying 40% tax on the JSA. Can I simply delay signing on until April? I know I only get 6 months of payments.

bob60

I would also be interested in an answer to this question.
Thanks

rogerblack

To not address the question directly.
Six months after you claim, you will not be entitled to contributory JSA.
This means you will need to move to ir-jsa.
With this, your lump sum may be looked at, to see if you've spent it on more than the basic neseccities, with a view to being eligible for more benefit.

Search 'deprivation of capital' on here, and 'notional capital'

Notmyrealname

Even if you were taxed on the full amount, as a single person the difference would be a few quid. I don't know of any single person who has ever had tax deducted from a JSA payment.

Caz3121

You need to look at the full taxable income for the tax year. Remember the first £30k of redundancy is tax free
If you add up the taxable income + x weeks JSA then you should be able to compare the tax due for the year against what you will have paid from your employment