Whiplashy Registered User
#1

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?

plys Registered User
#3



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 Registered User
#4

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

plys Registered User
#5

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 Registered User
#6

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!

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Citizenpain Registered User
#7

plys said:
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 Registered User
#8

Whiplashy said:
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 Registered User
#9

Citizenpain said:
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 Registered User
#10

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

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Whiplashy Registered User
#11

howamidifferent said:
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 Registered User
#12

Whiplashy said:
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

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