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DH has been accussed of claiming benefits he wasn,t entitled to - he didn't

(32 Posts)
Hoaz Wed 13-Feb-13 11:46:26

He was unemployed for 4 months at the end of 2010 and claimed contributions based JSA - nothing else, as I was working p-t and just above the threshold.

Thankfully he found new work relatively quickly and he has a letter from the Job Centre thanking him for advising them of his change of circumstances and confirming JSA payments would stop the day before is new job was due to start. No more payments were made.

He has now had a letter from IR advising his that his tax code will be amended, meaning that he pays an extra £100 per month tax in 2013/14 due to them "previously advising you that you underpaid tax in a previous tax year"

That's it no, calculations, doesn't say which year and we have definitely not had any previous letter.

So, he's called IR to be told it relates to the tax year 2010/11 when he was paid JSA for 12 months, when he was working for 8. shock

I'm really cross;

-It sounds like it's going to be a proper headache to get it sorted out (the JC letter is apparently not sufficient evidence to prove the benefit wasn't paid confused )
-He was really reluctant to claim the JSA in the first place and now wishes he didn't
-How dare they send a letter implying he had ignored previous correspondence that wasn't sent (they haven't been able to supply copies)
-If they really believe he claimed benefit he wasn't entitled to, isn't there a bigger issue than just clawing it back. I thought benefit cheats were dealt with firmly (obv glad on this occasion that they haven't, but still...)

M1SSUNDERSTOOD Fri 15-Feb-13 00:19:15

Hi this happened to me this year for tax year 2011-2012 as DWP gave HMRC a guesstimate for year. Write to DWP and ask for a tax enquiry form for relevant years and send to HMRC to rectify calculation. HTH

carben Thu 14-Feb-13 16:42:49

Well JSA is £71 pw. So 4 months of that would be £1136 or thereabouts as paid 4 weekly rather than calendar monthly. So it would seem that the figure given by the IR is the total amount of additional income received over the tax year rather than the additional tax owed.

Viviennemary Thu 14-Feb-13 16:37:08

I apologise. I didn't see the part where the Inland Revenue said a letter from the Job Centre wouldn't be sufficient evidence. I can't see how the Inland Revenue can base income on 12 months jobseekers when only 4 months was received. I think going to the Citizens Advice is the way forward to sort this out. Or you could contact your MP.

aufaniae Thu 14-Feb-13 15:34:08

Vivienne, have you read the OP's posts?

The IR have told them it's based on 12 months JSA when he only got JSA for 4 months. They have also stated it's related to overpayment of JSA.

They have not said it's for tax on his JSA, and the figures don't add up for that anyway - tax on approx £1,000 of JSA does not make £1,200K!

Viviennemary Thu 14-Feb-13 12:17:38

JSA is taxable. So your salary for that tax year plus jobseekers allowance will be your income for that year. So he isn't being accused of claiming benefits he isn't entitled to. Only that he didn't pay tax on his JSA. This isn't an unusual thing to happen when people get income from different sources so don't worry. You could phone the DWP and ask for confirmation in writing of when the JSA was paid. I'm sure this will get sorted out.

aufaniae Wed 13-Feb-13 16:27:37

I find it totally believable. They told me I had to sign off from my contribution-based JSA while I was job hunting. 5 months later they contacted me to say actually, their mistake, I shouldn't have been told to sign off at all. hmm

You could do with someone who know the system advocating for you. Could you try Citizan's Advice maybe?

Wouldbefunnyifitwasnttrue Wed 13-Feb-13 16:19:16

Nh

Baabaapinksheep Wed 13-Feb-13 16:18:15

What tax code have they issued him with for 2013-14?
And what tax code is he on at the moment?

Hoaz Wed 13-Feb-13 16:08:48

No, I always check our p60s at the end if the tax year, so I know his was right and I was due a rebate( worth doing). I admit I forgot about the jsa, so there is tax due on approx 1000.

They are definitely referring to over payment of jsa which they claim he was paid for 12 months, when he was only due 4. Glad I'm not the only one who finds this unbelievable!

Groovee Wed 13-Feb-13 16:01:51

It sounds like the previous tax code on the P45 was wrong and therefore when he handed that one in instead of waiting for the new one to come through it would have all worked out. But he may have been under paying for a while on his new wage.

LIZS Wed 13-Feb-13 15:55:29

Are you sure it is £100 pm and not that his code is being adjusted by £1200 on which he would probably only pay 20%.

Hoaz Wed 13-Feb-13 15:54:57

yes, I'm sure, they say he owes 1196, which is why the tax code's been increased

ThingummyBob Wed 13-Feb-13 15:53:24

Also 'Emergency' tax is actually just basic rate tax at 20% - which would have ensured no underpayment for your dh for the year confused I can see how its happened, but he has underpaid tax thats all.

If he was being accused of claiming benefit to which he was not entitled you'd really know about it!

MrAnchovy Wed 13-Feb-13 15:51:54

Are you sure that the change in tax code will result in paying an additional £100 a month tax? This would imply that the normal tax code for 2013/4 of 944L would become 344L.

If instead £1,200 has been deducted from his allowance so that the code is 824L he will pay an additional £240 of tax (£20 a month). This is about the amount of tax that would be due on four months of Contributions Based JSA.

ThingummyBob Wed 13-Feb-13 15:49:12

It souns like the P45 (not P60 as I was saying earlier d'oh blush) wasn't issued until a later date than he stopped receiveing the payments. Still no biggie, its total taxable income for the year that is calculated, not what it is made up of or how long teh JSA wa sbeing paid for.

What tax code has he been issued for 13-14? Remember the tax code is an amount to be taxed at 20% - so an increase from 810 to 910 would be an additional £200 tax to pay - not £1000.

Hoaz Wed 13-Feb-13 15:36:38

He didn't get p45 from job centre until 2 months after he started work, so yes it may have been wrong to give new employer the one from his previous job, but it avoided an emergency tax code and we knew he would ultimately have to pay tax on the jsa.

But they are saying he was paid has for 12 months, not the 4months he was entitled to, so yes, he has been accused of receiving money he wasn't entitled to. How else would you put it? They're not asking for tax on the jsa, but for repayment of 8 months jsa, which he was never paid. There's no way tax on 4m jsa could be 1200.

titchy Wed 13-Feb-13 15:32:53

Agree with starfish - he should hve given p45 to JSA people and then they supply a new one when he finished claiming. Effectively his work have used the wrong tax code as a result of this, carried forward a code that is too low for a whole year.

starfishmummy Wed 13-Feb-13 15:22:48

Argh. Bloody phone

His payroll dept would have been working on a total taxable income that was wrong - jsa is included in this; so thinking he had earned less over the hear than he did, presumably not enough tax was taken.

So there has been an error, but this is hardly being "accused of claiming benefits he shouldn't have". (and if he had it would be dealt with by dwp not hmrc)

starfishmummy Wed 13-Feb-13 15:18:41

Sorry posted to soon.

So

starfishmummy Wed 13-Feb-13 15:16:23

Hoaz.
You say he gave his new employer the P45 from his old employer. This was wrong.

When he claimed jsa he would have been asked to give the jobcentre the P45 from his old employer. When he signed off the centre would have sent him a new one which would have included the amount of jsa in the amount of taxable income.

So

This is the P45 he should have given his new employer.

Hoaz Wed 13-Feb-13 14:43:34

Thanks molly,I know I can work it out and I have - he owes tax on the JSA he was paid for 4 months, but the IR have said this amended tax code relates to overpayment of JSA and they've quoted the dates it was paid over, a full 12 months, not the actual 4 months.

That's exactly what happened HighJinx, but tax on 4 months JSA can't be £1200

HighJinx Wed 13-Feb-13 14:30:03

When he started work again using the P45 from his previous employer did he pay less tax in the first pay period as he had not 'used' his tax free allowance during the months he had not been working?

It may be that you were given the full tax fee allowance for that year against his salary earned in the two employments without taking into account his JSA income (which they may now be over estimating)

we asked for calculations for how this liability h as been calculated and they can't/won't give us any, as it ,'relates to overpayment if jsa.'

^^this sounds wrong though. If they are going to make deductions from his salary then surely they need to supply you with information as to why.

mollymole Wed 13-Feb-13 14:27:03

You can work this out for yourself if you have the necessary paperwork

Add together the whole of his Gross income from working and JSA take from this his taxable allowance and the balance of the money is that liable to tax.

You can get the personal tax allowance for the year in question from the HMRC
website, as well as the tax bands.

When you have this put it all in writing to the tax office and ask them to confirm that the calculation you have made is correct AND say that if they dispute your figures then you want a written calculation of their workings.

They CAN and SHOULD put their calculations in writing to you, and if they do not do so then ask you local MP to sort this out.

Hoaz Wed 13-Feb-13 14:19:33

It is the jsa! He went on paye with a tax code based on his p45 from his old job, as soon as he started at the new Co. that was correct, I checked it then and have done so again now. He probably does owe tax on the 4m worth of jsa he was paid, but that cant be 1200 pounds.

we asked for calculations for how this liability h as been calculated and they can't/won't give us any, as it ,'relates to overpayment if jsa.'

ThingummyBob Wed 13-Feb-13 13:41:42

Hoaz it honestly doesn't sound like the JSA itself. That would be dealt with in a very different way I assure you. You do not simply pay back benefits claimed in error/fraud through the PAYE system. You do however pay any underpaid tax in this way...

I'd not fret too much at all. The JSA can easily be matched up to yor dh without evidence and bank statements etc. Get him to call the employees helpline on 0845 300 0627 and they will go through the problem/details etc with him.

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