Job Seekers Benefit Taxable

Duffy89

I'm wondering if anyone knows how job seekers benefit is taxed? I signed on 4 weeks ago but I start a new job tomorrow. Should I have informed Revenue the I was receiving job seekers? I just don't want to end up owing tax at the end of the year. Thanks in advance.

myshirt

I believe they might already know... however there is no mechanism for collecting the tax on jobseekers at source, so generally you'd be looking at one of two things:

1. Pay a lump sum by 31 October (not the end of the year as you thought).
2. Or tell revenue to collect it from your wages in new job

If they already know you have jobseekers, which I believe they do, then they will themselves just instruct your new employer to collect the tax on jobseekers from your new wages, in addition to the normal tax you'd be paying. So it just jumps up your tax bill until you've it paid off.

Bar that, fix them up with a bank transfer the following October. They don't take cheques.

Cushie Butterfield

Even though JSB is a taxable source of income if it was your only source of income you don't have to worry about it. It will be recorded under your PPS number & your tax will be evened out under the PAYE system when you start your new job. In all likelihood you'll probably find that as soon as your new employer has your up to date tax free allowance info from revenue that you'll have a few weeks where you'll pay little or no tax as you'll be 'refunded' (through PAYE system) some of the tax that you've already paid when employed earlier in the year. In the normal course of events you would have applied for the tax refund directly from them if you had remained unemployed.

mp22

If you wish you can apply to the revenue for a balancing statement at the end of the year (best done in Jan),you may even get a few quid back.