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Income based JSA-Taxable???

I've come off JSA and got a letter saying the Inland Revenue will be in touch to tell me if I owe them any tax.
I thought Income based JSA wasn't taxable?
Can't fine any info online to work out what I might owe,
I've got 60 days to write to the DWP to state my case if this is wrong-or work out what I should be charged if they're right.
Seems weird to pay tax on something that's designed to get you through having no income?
Any advice/info would be much appreciated.

Comments

  • poppy12345
    poppy12345 Posts: 18,976 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    DawnRose8 wrote: »
    I've come off JSA and got a letter saying the Inland Revenue will be in touch to tell me if I owe them any tax.
    I thought Income based JSA wasn't taxable?
    Can't fine any info online to work out what I might owe,
    I've got 60 days to write to the DWP to state my case if this is wrong-or work out what I should be charged if they're right.
    Seems weird to pay tax on something that's designed to get you through having no income?
    Any advice/info would be much appreciated.
    Yes it is. See link for confirmation. https://www.citizensadvice.org.uk/debt-and-money/tax/what-is-taxable-income/taxable-and-non-taxable-income/
  • mjrc
    mjrc Posts: 5 Forumite
    You beat me to it poppy -- see also the Income Tax (Earnings and Pensions) Act 2003 -- specifically part 10 / section 660. Jobseeker's Allowance is taxable, even income-based.
  • DawnRose8 wrote: »
    I've come off JSA and got a letter saying the Inland Revenue will be in touch to tell me if I owe them any tax.
    I thought Income based JSA wasn't taxable?
    Can't fine any info online to work out what I might owe,
    I've got 60 days to write to the DWP to state my case if this is wrong-or work out what I should be charged if they're right.
    Seems weird to pay tax on something that's designed to get you through having no income?
    Any advice/info would be much appreciated.

    If your only income for the year is JSA then yes, you would pay no tax asyou are under the personal tax allowance.

    However, if you claimed JSA for two months and then got a job paying 30k, then it is added to your income for the year and you pay tax at the normal rate.
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