Illness Benefit Question

cartwheel

Question about illness benefit
"Illness Benefit is paid directly to you without any deduction of income tax. If you are employed, your employer will take your Illness Benefit into account for PAYE purposes. If you are unemployed, Revenue will take account of the amount of Illness Benefit paid to you when they adjust your tax credits or review the tax affairs of your spouse or civil partner. Contact Revenue for more information."

I've a friend who has these figures:
Total Pay: 21615
Taxable Illness Benefit: 1598
Net Tax Deducted: 823
Total pay for USC: 20017

From that, I can gather he was meant to pay tax on 21615 x 20% = 4323
4323 - 1650 -1650 -200(rent) - 124(medical)= 699.

However, the balancing stagement he received shows income of 22711 ? 21615 + 1096 Illness Benefit.

I'm just wondering, where did they get the 1096 figure from? It's not on the p60. And isn't the illness benefit included in the 21615 figure?

Dublinmuppet

he should get letter from employer confirming they included illness benefit in p60 and then revenue will adjust taxable pay

Mr. Incognito

Please read the charter.