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