PAYE/Social Welfare

Lynfo

Have to get this off my chest, before I scream :eek:
I was made redundant a few months back, and with no prospect of getting a job, I signed on for the first time. After successfully landing a decent job a few months later, I realise now that even after 10 years of working full time & paying tax - I am now paying for my time on the dole. My Tax credits are significantly reduced as a result of receiving unemployment benefit.
I mean - I didn't ask to be made redundant (I wasn't even in the job long enough to get a redundancy payout), so in good faith, I signed on while looking for a job - and now am paying more tax than I should. Not only that, but there was no mention anywhere that this would happen when I was applying for the dole - surely this information should be given out? Where is the feckin logic in that???
Has anybody else had a similar experience?

loyatemu

are you sure about this - are you not just on emergency tax?

Lynfo

Positive, my PAYE notice has a new column 'Tax Credits Reduced by' and then below that it has 'DSFA Unemployment Benefit' The amount given here was taken off my Tax Credits.

Beano

Social welfare payments are classed as taxable income and have been for a few years now.

Moonbeam

That seem spretty unfair,if you work and for a short period of time need the payments you are penalised but if you are too lazy to get a job and just life off the dole your fine.

leeroybrown

As is pointed out above you are now paying tax on the unemployment benefit payments you received. Take a look at the bottom of this page.

Beano

I dont really see what is unfair about it. It is part of your income for the year so should be taxed as such.

Lynfo

I do think it's quite unfair, I didn't query the amount I was being paid at the time (which in hindsight I probably should have) However, the amount I was paid per month was almost exactly enough to cover my mortgage payments. However, if I was living alone, I would have had no electrics, phone, heating or food for the couple of months that I was getting it. I think for a person who has paid tax for all my working life (over 10 years now) the government should have some kind of tax free benefit - don't you think?

Snivilian

Beano wrote:

I dont really see what is unfair about it. It is part of your income for the year so should be taxed as such.

Got to agree with that. It is a source of income and must be taxed accordingly