Am I entitled to JSA?

choyaa

Hello,

I was made redundant at the beginning of May with one month's redundancy. I relocated for the job and bought a house with a mortgage on it and rented out my original home. The rent from the original home almost pays that mortgage and I have a part time job that brings in around £25 per week. I assume I'm not entitled to JSA due to the property situation?

Eeasp

https://www.gov.uk/jobseekers-allowance/eligibility

There's a calculator on there too. I don't think you will be entitled to JSA as you technically have an income from the rented property, what you chose to do with that, i.e. pay off a mortgage, is up to you. I guess it depends on how much you're earning for the rent money and part time job combined with the eligibility levels the government have put in place. Check out that website, it's pretty clear.

davecon1

I was under the impression that JSA is not affected by rental income. The inland revenue will certainly be more interested in that as you should be paying tax assuming the amount is over the threshold.

Saying that it's best to declare you have an alternative income as that can affect your claim. Also if you work part time you need to make sure it's under a certain amount of hours to claim JSA.

Job seekers allowance is just that- it is a benefit to help you while you actively seek employment.

pmlindyloo

You may be eligible for contribution based JSA. This would be affected by earnings - there may be a small disregard - but savings and capital are not taken into account.

Contribution based JSA is loosely based on your NI contributions during the last two tax years so apply if you have been in full time work. Contribution based JSA only lasts 6 months.

Income based JSA takes into account income and savings/capital. A second property will be treated as capital (market value less the mortgage) and the rental income as income so most likely wouldn't be eligible for income based JSA.