Will I pay tax??

SuperFrank88

Hi everyone, 

So I was made redundant and had my P45 dated 31st December. I have started a part time bar job just to keep me ticking over until I find my next permanent job. 

I am doing around 15 hours a week and have applied for new style JSA.

My question is, will I pay tax between now and April 6th in my new part time job as I had already earned over the personal allowance in my last job? 

I know that come the new financial year if I have not found a new permanent role then I will not pay tax as I will not be earning enough. 

TIA 

Marcon

SuperFrank88 said:

Hi everyone, 

So I was made redundant and had my P45 dated 31st December. I have started a part time bar job just to keep me ticking over until I find my next permanent job. 

I am doing around 15 hours a week and have applied for new style JSA.

My question is, will I pay tax between now and April 6th in my new part time job as I had already earned over the personal allowance in my last job? 

I know that come the new financial year if I have not found a new permanent role then I will not pay tax as I will not be earning enough. 

TIA 

Depends how much your part time job pays. Your personal allowance is 'drip fed' during the tax year, so the fact you earned above the personal allowance in your last job means you will have had 9/12ths of your personal allowance for the tax year and paid the necessary tax on the rest of your earnings. 

Because the personal allowance is allocated on a month by month basis, you will be able to earn 1/12 of the personal allowance (i.e. £1,048)  each month before any tax becomes payable in the current tax year. That includes all sources of potentially taxable income, not just your earnings from your part time job, so you need to add in any JSA benefit you receive.

getmore4less

As well as having that 1/12  if you earn less there could be a tax rebate if your codes are right.

Any JSA is also taxable.

TELLIT01

If your new employer doesn't enter the information from your P45 before payroll is run then you will probably be on 'emergency tax' rate.

SuperFrank88

Thank you all for your replies. It will be minimum wage so I will be well under £1048 even with the JSA included. 

Ok I will give my P45 in because we are not paid until the 28th of the month. 

sammyjammy

You won't get NS JSA as well as working 15 hours as your earnings will cancel it out.

SuperFrank88

sammyjammy said:

You won't get NS JSA as well as working 15 hours as your earnings will cancel it out.

What do you mean cancel it out? On gov.uk it says that you can work less than an average of 16 hours per week and still get new style JSA? 

baza52

SuperFrank88 said:

sammyjammy said:

You won't get NS JSA as well as working 15 hours as your earnings will cancel it out.

What do you mean cancel it out? On gov.uk it says that you can work less than an average of 16 hours per week and still get new style JSA? 

have a look at https://www.citizensadvice.org.uk/benefits/help-if-on-a-low-income/jobseekers-allowance-jsa/before-you-claim-jsa/check-if-you-can-get-jsa/

How much JSA you’ll get

If you’re eligible for new style JSA, you can get a 'personal allowance' each week of up to:

• £59.20 if you’re 18 to 24
• £74.70 if you’re 25 or over

The exact amount you get will depend on your circumstances - for example, your payment might be less if you work part-time or get a pension.

TadleyBaggie

SuperFrank88 said:

What do you mean cancel it out? On gov.uk it says that you can work less than an average of 16 hours per week and still get new style JSA? 

What it actually says is if you work 16 hours or more you (almost certainly) can't claim JSA. If working less than 16 hours you can likely claim JSA but the amount you get will depend on how much you earn. Potentially JSA payment could be reduced to nothing.

SuperFrank88

TadleyBaggie said:

SuperFrank88 said:

What do you mean cancel it out? On gov.uk it says that you can work less than an average of 16 hours per week and still get new style JSA? 

What it actually says is if you work 16 hours or more you (almost certainly) can't claim JSA. If working less than 16 hours you can likely claim JSA but the amount you get will depend on how much you earn. Potentially JSA payment could be reduced to nothing.

I see. So if I did 15hrs/week I’d earn gross £133.65 which would definitely reduce it to nothing.

Thank you 

TadleyBaggie

SuperFrank88 said:

I see. So if I did 15hrs/week I’d earn gross £133.65 which would definitely reduce it to nothing.

That isn't clear, the reduction "formula" doesn't appear to be in the public domain. So you would probably need to make a claim to be able to find out.