[Whiplashy]

I am on a three day week and receiving jobseekers allowance. I read somewhere that when you are working, income from social welfare is taxable? Is this correct? What do I need to do to sort it out?

[Citizenpain]

Jobseeker's Allowance is not taxable

http://www.citizensinformation.ie/en..._payments.html

[plys]

Originally Posted by Citizenpain

Jobseeker's Allowance is not taxable

http://www.citizensinformation.ie/en..._payments.html

How do you work that out..? from your link...

Your social welfare payment may or may not be deemed taxable but even if your social welfare payment is taxable, you may not actually have to pay tax on it.

Actually, just saw further down the page that it is not taxable... I was pretty sure I paid tax on Jobseekers Allowance when I was receiving it - fortunately i got back into a position where I was liable to pay tax :-)

[Citizenpain]

Jobseekers benefit is taxable.... maybe that is what you were getting

[plys]

maybe so - never really looked into the difference between the two to be honest. I can't imagine that I'm the only one to consider that the terms are interchangeable..?

[Whiplashy]

That doesn't seem very fair. Why should benefit be taxable and not allowance? Not that I'm going to complain about not having to pay tax!

[Citizenpain]

Originally Posted by plys

maybe so - never really looked into the difference between the two to be honest. I can't imagine that I'm the only one to consider that the terms are interchangeable..?

Jobseeker's Benefit is paid to people who have paid adequate social insurance contributions and who are out of work.

Jobseeker's Allowance is means tested and paid to those that do not qualify for JB

[Citizenpain]

Originally Posted by Whiplashy

That doesn't seem very fair. Why should benefit be taxable and not allowance? Not that I'm going to complain about not having to pay tax!

I think it is because you can claim paye tax credit with JB - which should cover the tax more or less......

[Whiplashy]

Originally Posted by Citizenpain

I think it is because you can claim paye tax credit with JB - which should cover the tax more or less......

I'm claiming PAYE tax credit. I wasn't claiming JA when I applied for my tax credits. Should I not have that tax credit now that I am claiming JA? I really don't understand the tax system, or the welfare one

[howamidifferent]

If your working you are not on JA you are on JB. This is taxable income.

[Whiplashy]

Originally Posted by howamidifferent

If your working you are not on JA you are on JB. This is taxable income.

No I didn't have enough contributions from 2010 so I didn't qualify for JB. I'm on means tested JA

[Citizenpain]

Originally Posted by Whiplashy

I'm claiming PAYE tax credit. I wasn't claiming JA when I applied for my tax credits. Should I not have that tax credit now that I am claiming JA? I really don't understand the tax system, or the welfare one

dont worry about it -- you are not using it against JA anyway

our tax system is actually one of the more straight forward ones

social welfare ---- don't get me started