JSA Taxable?

Discussion in 'Tax' started by osborpa, Dec 6, 2009.

  1. osborpa

    osborpa Guest

    Hi All,

    Just trying to sort out the Mrs' 08/09 tax return - but I'm not clear how to show Job seekers Allowance? I didnt think it was taxable - but the online guide says to list it.
    She has had full two full time jobs over the year, a small income from our part time business, and was unemployed for several months. Total actual employment + our partnership income circa 16k.
    Her P60 includes JSA in the 'previous employments' figure.... and seems to have been taxed on it effectively. Is this right?

    thanks in advance for advice

    Paul
     
  2. osborpa

    osborpa Guest

    Right - found some more info, including the letter stating that her JSA is taxable. BUT - I don't think it is with total annual income at 15.5k? Can anyone please confirm this?
    The letter from JSA states that the benefit is taxable - but at this point (January) she was on track for 20k in the tax year.
    I can't find anything on HMRC advising where the break point are tho.....
     
  3. asdfg

    asdfg Frequent Poster

    Posts:
    1,550
    It is taxable and has to be listed as income.


    Return would look something like the following

    Income from employment say 4,000 (8 weeks)
    Income from JSA ................8,800 (200 approx * 44 weeks) a number of weeks may be excluded from income
    Total Income .....................12,000
    Tax * 21% ......................... 2,520
    Tax credits ................say ...3,000...
    No tax payable
     
  4. osborpa

    osborpa Guest

    Surely in that scenario it would be 12000 - 6035 that is taxable, so 1193 tax due at 20%??