JSA Taxable income refund?

moped_mark

Hi All

Quick question!

Basically I havent had a job for a few years and was untill recently on jobseekers. Now I have a job and I've received a letter from the jobcentre saying they have "paid a total of £776.40" taxable income.

Now as I only have 2 months pay (roughly £1000 pm) left before the start of the new tax year, does that mean that I will get the £776 refunded because I havent reached the threshold of the personal allowance?

dmg24

Do you mean that you have paid £776.40 income tax? Taxable income is not the same as tax.

How long were you claiming JSA for?

moped_mark

no its "taxable income"- thats how its put in the letter.

dmg24

In that case that is not what you have paid, that is the amount that is taxable! Check how much they have been paying you each fortnight, chances are that you have not paid a penny of tax! x

System

JSA is taxable income so the £776.40 you received when you were claiming it has to be added to your other taxable income, from all sources, in the tax year when HMRC considers how much tax you should have paid.

If your only other income from April 07 to April 08 is only £2000 then

£2000 + £776.40 = £2776.40 which is less than your tax free allowance of £5225 and so you will not have a tax bill from the tax office.

moped_mark

Great! So no income tax for feb or march's pay?!

dmg24

No, unless you are not yet on your correct tax code. If that is the case, you will pay tax but then get a refund later.

moped_mark

well I've just got my p45 and handed it in and the code was 522L so it looks right.

dmg24

The P45 code is only relevant if your new payroll dept process it in time. Give them a call and double check?

chrisbur

moped_mark wrote: »

well I've just got my p45 and handed it in and the code was 522L so it looks right.

Check the box to the right of your 522L code, if this has an X in it then you are on a week 1/month 1. If this is the case it means that for the moment no allowance will be made for previous earnings. You will have to wait for the tax office to put you on a cumulative code.