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Job Seekers Allowance - Tax Refund

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northernmonkey | 09:07 Fri 19th Mar 2010 | Personal Finance
4 Answers
I got a P45 in the post also enclosed was a A4 sheet of paper, with information about Tax.....the amount £727.32, informing me that if I take the form into my local Job centre Plus office, I will recieve a Tax rebate or something along those lines.

As far as I was aware, whilst on JSA (and other benefits?) I do not make Tax payments, therefore I can't understand how £727,32 has been paid over a set period of time from my "JSA" if my Job Seekers has not been deducted?

Basically, I don't have a clue how I am entitled to a rebate? Can anybody who has any info about this, please share with me, it'll be much apprciated !!

Secondly, this may prove to be a no-hope question, but, Has anybody who has been on / is currently on JSA recieved any ££ from HMRC, if so how much ?? Just so I have a rough idea of what I can expect.

Thank you to all that have taken the time to read the above, any advice / info given is as always greatly apprciated.

Have a good day everybody!!!
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You've not stated how long you've been on JSA. If you were employed during the early part of the current tax year (i.e. from April 2009 onwards) you will have been paying PAYE tax during that period. Some of that tax might now be due back to you because your taxable income throughout the whole of the tax year is less than what the system was assuming it would be.

For example, if you were earning £400 per week, you would have been paying about £55 per week in tax because the system assumed that your taxable pay for the full year would be £20,800. If you lost your job 20 weeks into the tax year and then received only £65 per week of JSA for the rest of the year, your total taxable income for the year would be £10,080. That means that your tax liability for the year would be approximately £720. Since you'd already paid £1100 in tax, HMRC would have to repay about £380.

Chris
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Hi, I was on JSA for roughly 5/6 month's.

Well, I was on £50.95 per week
I answered this earlier but I can't see my answer on AB. My answer was along teh same lines as Buenchico's answer. JSA is taxable, provided your earnings in the tax year exceed your tax free allowance. If you had earnings earlier in the year you'd have been taxed as if you would earn ithat income every week/month all year, so if you then moved onto JSA a tax rebate could be due.
But the best advice is to do as they have said- take in the form
Question Author
Thanks for taking the time to answer my Question, it's greatly appriciated.

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