DLA whilst working HELP

helpme90

danielanthony wrote: »

Some people pay 45% tax, welcome to the world of work.

Whilst earning only £189 a week? I don't think so. And please dont patronise me like that, you dont know me and I am very much someone who is determined when it comes to "the world of work". This is about right and wrong and this thread is only about me questioning whether I am getting taxed too much.

nannytone wrote: »

your SLA amounts still cant add up to £220
either low mobility or low care = £21 a week
middle vare = £53 and hoh mobility = £55

so at the lesser gigures, to get anywhere near the £220 you would be getting £296 a month ( middle care and low mobility) so you need to check the amounts you are receiving

Sorry nannytone. Having just looked, £296 is in fact the exact amount I get a month. Sorry for continually confusing on this, I am fixated on the tax issue at the moment you see.

nannytone_2

yjr 3k figure is the amount you have received in JSA and so reduces your tax code by that amount.
this means you can earn up to the 6k figure, without being taxed, between now and april 2014

danielanthony

helpme90 wrote: »

Whilst earning only £189 a week? I don't think so. And please dont patronise me like that, you dont know me and I am very much someone who is determined when it comes to "the world of work". This is about right and wrong and this thread is only about me questioning whether I am getting taxed too much.

!!!!!!, they are deducting the amount you've received in DLA from your annual tax allowance, you can earn £6690 before paying tax until April 2014 when your allowance goes up to £9440 after April 2014. As in 2014 you'll be earning £12,000+ in work+DLA you will pay 30% tax+NI on the amount over your personal allowance, so about £900 per year.

Either way, between now and April 2014 you should earn less than £4000 anyway so far less than the tax threshold.

Derwent

DLA is not taxable income and so is a red herring here and needs to be disregarded, so forget about DLA as it has nothing to do with your tax position.
You have been getting JSA and for HMRC purposes that is classed as being taxable income. Obviously, your earnings from the job are also taxable income.
But - just because it is "taxable income" does not mean you will pay tax. You do not pay tax until the combined sum of JSA and wages go over the £9,440 threshold.
So what HMRC have done is this :-
You started the year being able to have £9,440 tax free
You have had £2,749 of JSA in the tax year
Therefore, your remaining tax free allowance is £6,691 for the remainder of the tax year

There are around 20 weeks of the current tax year left, so in that time you will earn around £3,780 in wages.

Add that to the £2,749 of JSA and your total "taxable income" for the year will equal £6,529

Therefore, because this amount is below your £9,440 allowance then you will pay absolutely no tax at all this tax year. Nothing, zip, zilch, nowt.

It really isn't that difficult to comprehend.

helpme90

Derwent wrote: »

DLA is not taxable income and so is a red herring here and needs to be disregarded, so forget about DLA as it has nothing to do with your tax position.
You have been getting JSA and for HMRC purposes that is classed as being taxable income. Obviously, your earnings from the job are also taxable income.
But - just because it is "taxable income" does not mean you will pay tax. You do not pay tax until the combined sum of JSA and wages go over the £9,440 threshold.
So what HMRC have done is this :-
You started the year being able to have £9,440 tax free
You have had £2,749 of JSA in the tax year
Therefore, your remaining tax free allowance is £6,691 for the remainder of the tax year

There are around 20 weeks of the current tax year left, so in that time you will earn around £3,780 in wages.

Add that to the £2,749 of JSA and your total "taxable income" for the year will equal £6,529

Therefore, because this amount is below your £9,440 allowance then you will pay absolutely no tax at all this tax year. Nothing, zip, zilch, nowt.

It really isn't that difficult to comprehend.

Thankyou very much for your input.

However, it does seem to be difficult to comprehend because I have again been taxed.

I have been taxed £150 off a £800 monthly pay which came from my £189 a week wage as explained in this thread.

Firstly consulted my personnel manager who said my tax code was wrong and to call HMRC. I called them and eventually (literally, eventually!) got through to a speaking person and explained it to them. She now tells me because I myself told HMRC of the job, AND the company told them of the job, get this... I have been put in as a DUPLICATE employer - has anyone ever heard/experienced that before??? Basically, according to there systems I am in as 2 jobs as my company. Ridiculous or what?!

Anyway, she sorted that and put me in the system right (I dont have great confidence in that however!) and said my tax code is now 944L (which she claimed is what it should be, as opposed to 669L)

She then said my tax code was right, I will not get taxed again and to get refunded on my tax (now over £300) I have to get my P45 from JSA and give her the details of that.

So, remain confused/worried/going bonkers!!