JSA and reclaiming income tax

Dice42

Hi,

Is there a limit on JSA earned and receiving a tax rebate?

I received a tax rebate for last year (April 2013/14) on the bases I didn't work the full year.
My sister has been trying to claim due to similar circumstances (though she started her job a month earlier than myself).

HMRC have said she is not due any because she received more than £500 of JSA. This makes no sense to me as I would have received more JSA than her but got my rebate (though I have earned and paid more tax than her). I know it's taxable but this is not a rule I've heard before.

Is this HMRC advisor correct? Is there a new rule?

Thanks

Caz3121

You need to work out
total income + taxable benefits for the tax year and tax paid and compare to the amount of tax that should have been paid for that income.
If more tax paid than due then rebate should be paid although if you started work during the tax year and gave P45 from the job centre to the employer then this should have been sorted out via PAYE (initially paying a very small amount or no tax whilst the unused monthly tax allowance is used up) so it could be that she has paid the correct amount of tax for the income

Did both you and your sister hand in P45s? Did the employers have you both on the correct tax code?

Dice42

Hi,

Sorry for the late reply. We have both handed in our P45s and were on the right tax code.

Everything is exactly the same for both for us, expect she got a job one month before me (give or take a couple of days). but she's being denied a rebate. And if either of us needed that money it was her.

chrisbur

Dice42 wrote: »

Hi,

Sorry for the late reply. We have both handed in our P45s and were on the right tax code.

Everything is exactly the same for both for us, expect she got a job one month before me (give or take a couple of days). but she's being denied a rebate. And if either of us needed that money it was her.

To see exactly what is happening you need to give full details for the year. List each job or period of unemployment with dates and for each give details of total taxable gross and tax paid/refunded.