JSA & Higher rate tax

kat74

I was unemployed & claiming JSA for a few weeks this summer & have just got a letter saying that I've underpaid tax (about £60) on the JSA I claimed (about £400).

Is this normal practice?

Does it make a difference that in my previous role, and my new one, I'm in the higher rate tax band?

Am just a bit confused as to how I've underpaid /
I've tried calling HMRC but there's a long queue so thought I'd see if anyone here can help in the meantime!

Thanks,

chrisbur

kat74 wrote: »

I was unemployed & claiming JSA for a few weeks this summer & have just got a letter saying that I've underpaid tax (about £60) on the JSA I claimed (about £400).

Is this normal practice?

Does it make a difference that in my previous role, and my new one, I'm in the higher rate tax band?

Am just a bit confused as to how I've underpaid /
I've tried calling HMRC but there's a long queue so thought I'd see if anyone here can help in the meantime!

Thanks,

This seems a little bit confusing. I think you should first check if this figure is correct.
Can you give the P45 details from your old job, exact payment and dates for JSA and details of P45 from Jobseekers?

Exact wording of letter advising underpayment and who sent it would be useful as well.

kat74

Thanks for the comments; appreciate the help
Chrisbur - requested information is:

Job ended Aug 26th; JSA claimed from Sept 6th to Oct 13th

Previous job p45:
Total pay to date: £20,234
Total tax to date: £3,676
Date of leaving: Aug 26th



JSA P45
Total taxable benefit in this period: £397
Total tax in this period: £0
Date benefit ceased: Oct 13th

Letter from benefit centre (received today)

We are writing to tell you that JSA can count as taxable income.
For the period up to 13 Oct 2015 in the 2016 tax year we paid a total allowance of £397, of which £397 was taxable. This is added to any earnings for this tax year.

If you think this amount of taxable allowance is wrong you should write to us within 60 days.
We cannot check your tax position because of a lack of tax information. We have notified the inland revenue. They will pay any refund due, or if you owe any tax they will tell you how it is to be collected.


Letter from IR (today)
For tax year 2014-2015
PAYE income: £45,131
Tax paid: £7676

JAS income: £144
Tax paid: £0

Income after deductions: £45,275
Personal alllowance £10,000
Income tax chargeable on: £35,275

Basic rate at 20% on £31,865 = £6,373
Higher rate @ 40% on £3,410 = £1364
Total tax chargeable - £7,737

Tax underpaid = £61.

I think I've included all the relevant figures, and I'm not aware of any other tax issues / outstanding amounts.
It might just be a coincidence in timing of JSA finishing and them uncovering an underpayment, but to me they seem related.

kat74

I think I might have for a couple of weeks in April last year.
Ok - so they're not connected, fair enough.
Just an odd co-incidence then.

Thanks for taking the time to look; I'll call the IR to find out more.
A bit annoying as I went through a lengthy process with them to sort out incorrect tax codes a few months ago & I thought everything was sorted.

chrisbur

The figures definitely indicate that the £144 unemployment was not added in to your figures for the second job. 40% of £144 is £57.60 and PAYE tends to slightly undertax you by just under £4 so when HMRC work out the exact figures it would come to £61.
Is it possible that your P45 was not given to the Jobcentre but given to your new employer instead?
I see that the P45 for this year that you received from the Jobcentre that your earnings/tax from your job are not included did you give them your P45 this year?