Tax refund after JSA claim

NewIslington

I left my previous job through redundancy in June.

I have been on new style JSA since then but start a new job next week. 

I am due a refund of tax from the redundancy payment and have had conflicting information about how that will be paid. 

When I claimed the JSA I wasn’t asked for a P45 from the job I’d just left. I have read that when your claim ends DWP will issue any tax refund due and issue a new P45. When I asked the colleague on the JSA line they said that you have to claim any refund from HMRC directly.

So my questions…

1. Do DWP issue the refund when they issue a P45? Or do I claim through HMRC?
2. If they do issue the refund is the refund issued before the P45 so that the P45 holds all the correct tax information for new employer?
3. Will they be able to issue a P45 if I didn’t give in a P45 when I claimed JSA? 

Thanks in advance 

Dazed_and_C0nfused

NewIslington said:

I left my previous job through redundancy in June.

I have been on new style JSA since then but start a new job next week. 

I am due a refund of tax from the redundancy payment and have had conflicting information about how that will be paid. 

When I claimed the JSA I wasn’t asked for a P45 from the job I’d just left. I have read that when your claim ends DWP will issue any tax refund due and issue a new P45. When I asked the colleague on the JSA line they said that you have to claim any refund from HMRC directly.

So my questions…

1. Do DWP issue the refund when they issue a P45? Or do I claim through HMRC?
2. If they do issue the refund is the refund issued before the P45 so that the P45 holds all the correct tax information for new employer?
3. Will they be able to issue a P45 if I didn’t give in a P45 when I claimed JSA? 

Thanks in advance 

1.  They can do but if you have neglected to give them your P45 how would they know what tax you have paid 🤔

2.  Yes, any P45 they give you should fall into one of two scenarios,
A.  It will simply reflect the taxable JSA they paid in the current tax year.  And probably have the emergency tax code on it (1257L).
Or
B.  It will include the cumulative details, both any JSA paid (and tax refund made) and your previous employment.

3.  Yes.  See A above

You won't be able to claim a refund from HMRC though.  You will need HMRC to send your new employer the total pay and tax figures (from the previous job and the JSA combined) to your new employer and your new employer will make any tax refund that is due as part of your pay.

You need to wait for your P45 from DWP and your first payment from your new employer (you can check for HMRC getting these details on your Personal Tax Account) before HMRC can issue the details to your new employer.

huckster

I have noted before that JSA received the previous employment P45 before they cancelled the JSA claim and this enabled the tax refund to be issued.  

You could ask JSA whether you can email them a copy of the P45, to enable the tax refund to be issued.  

NewIslington

huckster said:

I have noted before that JSA received the previous employment P45 before they cancelled the JSA claim and this enabled the tax refund to be issued.  

You could ask JSA whether you can email them a copy of the P45, to enable the tax refund to be issued.  

Thanks - I did bring the P45 to my initial interview but it wasn’t asked for and I didn’t think to offer it (never been unemployed before so don’t know how it works!)

I did notice that when I log in to my HMRC account JSA is on there with my former employer under the PAYE section so I’m hoping that DWP have had all the details off HMRC already to enable them to do a refund. 

Fingers crossed 

huckster

JSA will be listed as the benefit payments count towards your income for the tax year.

JSA will probably need the P45 from your last employers, if you want them to deal with tax refund.  The Work Coach at the Job Centre may have looked at the P45 as part of the checking documents at the first appointment.  But if they did not take a copy of the P45, then JSA won't have it.

NewIslington

huckster said:

JSA will be listed as the benefit payments count towards your income for the tax year.

JSA will probably need the P45 from your last employers, if you want them to deal with tax refund.  The Work Coach at the Job Centre may have looked at the P45 as part of the checking documents at the first appointment.  But if they did not take a copy of the P45, then JSA won't have it.

Thanks, think I’ll give them a call to see. 

I think I may have asked previously and they said that they already had all my PAYE records but I’m I’m not 100% sure and sometimes the information you get on the helpline varies from person to person so I’ll call and check. 

The one thing that is making me think perhaps they have it already it’s new style JSA so they have to know your contributions to check if you are eligible for it. But then again I could be wrong 😂.

NewIslington

NewIslington said:

huckster said:

JSA will be listed as the benefit payments count towards your income for the tax year.

JSA will probably need the P45 from your last employers, if you want them to deal with tax refund.  The Work Coach at the Job Centre may have looked at the P45 as part of the checking documents at the first appointment.  But if they did not take a copy of the P45, then JSA won't have it.

Thanks, think I’ll give them a call to see. 

I think I may have asked previously and they said that they already had all my PAYE records but I’m I’m not 100% sure and sometimes the information you get on the helpline varies from person to person so I’ll call and check. 

The one thing that is making me think perhaps they have it already it’s new style JSA so they have to know your contributions to check if you are eligible for it. But then again I could be wrong 😂.

I called them and got a nice lady who admitted she didn’t know but checked with someone who did. She said that HMRC provide the information at the end of the claim to DWP and tell them how much to refund so the P45 isn’t needed.