Taxation of JSB when on a 3 day week

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JP1234

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I understand that JSB is classed as taxable income however according the Revenue leaflet IT24 when on a 3 day week and receiving JSB for the other 2 days this is not taxable.

We received a P21 this morning stating we owed over €500 in tax! I rang the Revenue to query this and there were a couple of mistakes - one being the income I earned and relevent tax paid for 2 weeks I worked in a supermarket before christmas was not on the form despite me sending in details and them being scanned on the system, this has been sorted over the phone.

However for most of last year I was working short time ( February til November) and receiving the JSB top up. I was made redundant on 25 November and went onto full JSB ( this was suspended for the 2 weeks I worked in a supermarket) and only received full JSB rate of €204 for at the most 3 weeks. However on the P21 the full amount I received in JSB has been included as taxable income.

Am I missing something here? My understanding is that only the 3 weeks I received full JSB should be classed as taxable. The woman at the Revenue says they can only go off what the SW tell them and I now have to get a letter off SW confirming the amount which was taxable, that is going to be difficult given the work to rule in place at the minute. ( She also didn't know where I got this information about JSB not being taxable in some circumstances until I told her it was in a Revenue leaflet:rolleyes:)

Maybe I am mis-reading something here but when I work it out based on not paying tax on most of the JSB I should be getting a few hundred euro of a refund as my tax paid is below my tax credit.

Can anyone clarify?
 
Yes - you are mis-reading the leaflet IT 24 - this is the first paragraph .:

''Jobseekers Benefit (formerly known as Unemployment Benefit) is a taxable source of income. However the child dependant element and the first €13 per week of benefit are exempt from tax.

Jobseekers Allowance is not a taxable source of income''
 
thanks for replying but if you read further down the leaflet it states

I am in “short-time employment” and receive Jobseekers Benefit for the days I am not working. How am I affected ?

If you are participating in a short-time working arrangement Jobseekers Benefit payable is not taxable.


Short-time employment means employment in which the employees have been transferred from a normal working week to a short-time working arrangement each week (e.g. 3 days on / 2 days off) or within a period of four consecutive weeks (e.g. 1 week on / 1 week off; 2 weeks on / 2 weeks off; 3 weeks on / 1 week off).
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I have read that as the amount I received between February and November 2009 when I was placed on short time working should not be taxed, this is where I am getting a bit confused about missing something.

http://www.revenue.ie/en/tax/it/leaflets/it24.html
 
Your payment is known as "systematic short term benefit" and is not taxable.

The full rate of JB is taxable (which in your case was only 3 weeks) therefore your knowledge of same is correct.

You can obtain a certificate of taxable benefit from JB taxation section of SW. However it takes a long time and probably even longer in the current climate
 
thanks for confirming what I thought Blacksheep. I am going in to sign on today so will ask them about the certificate today.
 
Last edited:
Black Sheep said:
Your payment is known as "systematic short term benefit" and is not taxable.

The full rate of JB is taxable (which in your case was only 3 weeks) therefore your knowledge of same is correct.

You can obtain a certificate of taxable benefit from JB taxation section of SW. However it takes a long time and probably even longer in the current climate
Click to expand...

Thanks for this excellent info.

I too must get a "certificate of taxable benefit" from the Dept of SW.

I suppose I then post that the the Revenue Commissioners? (because it is the Revenue that would want to tax me)
 
Correct, and by the way that should read cert. of Jobseekers taxable benefit (not to be confused with Illness benefit) which is obtainable from a different section of SW.
What a clumsy system.!!!!!!!!!

When will we get to joined up thinking
 
I found out today that I was on "casual work" benefit and not systematic short time working benefit ( despite informing the SW office that my work had been cut from 5 full days to 3) and as such my benefit is taxable. I was told I should have queried it at the time ( as if I was to know there was a difference!) rather than the person dealing with my claim get it right and there is nothing they can do now:mad: So basically I am having to pay even more tax because of someone in the SW office mistake or incompetence
 
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