Page 3 | To think paying tax on jobseekers allowance is just crap

20thcenturygirlwithherhandsonthewheel · 2025-08-04T21:20:32+00:00

I was made redundant a few months ago. I have worked just under 30 years and never claimed any benefits before. DH and I have always saved to make sure that we have money aside just in case of emergencies (especially as housing benefits don’t pay the mortgage), so we have over £16k in savings and can’t claim anything means tested. fair enough. the only benefit I could claim when unemployed was contribution based jobseekers allowance: a massive £93 a week that I could only claim for 6 months. thankfully I was only unemployed for 8 weeks. But to my surprise I’ve just recieved a letter from HMRC telling me that the paltry £93 a week was taxable. So really; probably will end up about £70 a week. really pissed off: being putting money in the kitty for 30 years but getting so little when we needed it

Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 17:31

BIossomtoes · 05/08/2025 17:24

Why would you? I had mortgage insurance and didn’t claim because I didn’t need to - great redundancy package. It wasn’t £1 million though. I only took it out because it was a condition of the mortgage.

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Well, good for you. Most people would claim though. As that’s the whole point of insurance

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Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 17:31

BooneyBeautiful · 05/08/2025 17:29

But that's just a supposition. That would take a long while to implement as otherwise we would end up with another WASPI situation. Individuals need plenty of years to prepare if the state pension is going to be withdrawn. I can see the triple-lock system going first, followed by the state pension age being increased to 69 or even 70.

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Well, for us in our late 40s and younger… we’ve got 30 years to prepare. I really hope I’m wrong btw

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Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 17:29

BooneyBeautiful · 05/08/2025 17:25

The first £12570 is your personal allowance, then between that amount and £37,700 you are taxed at 20%, followed by £37,701 to £125,140 which is taxed at 40%. Anything above that is taxed at 45%. We don't have a 50% tax band any longer. Your tax bands seem to be a bit out of date. I do appreciate though that many people don't understand the tax system, just as they don't seem to understand the benefits system!

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Also, remember in Scotland the rates are a wee bit different too

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BooneyBeautiful · 05/08/2025 17:29

Gardeningisrubbish · 05/08/2025 14:18

I don’t think anyone who has an occupational pension will also get a state pension in the future. State pension is a benefit. They don’t HAVE to give you anything no matter what you’ve paid in, and with a population implosion on the horizon the state pension system is unaffordable.

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But that's just a supposition. That would take a long while to implement as otherwise we would end up with another WASPI situation. Individuals need plenty of years to prepare if the state pension is going to be withdrawn. I can see the triple-lock system going first, followed by the state pension age being increased to 69 or even 70.

BooneyBeautiful · 05/08/2025 17:25

Gardeningisrubbish · 05/08/2025 14:16

But then it’s just any pension income above £50k that is taxed at 40%. The majority of her income is taxed at 20%. Although apparently half the country have no idea that income tax works on a tax bands system…

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The first £12570 is your personal allowance, then between that amount and £37,700 you are taxed at 20%, followed by £37,701 to £125,140 which is taxed at 40%. Anything above that is taxed at 45%. We don't have a 50% tax band any longer. Your tax bands seem to be a bit out of date. I do appreciate though that many people don't understand the tax system, just as they don't seem to understand the benefits system!

BIossomtoes · 05/08/2025 17:24

Iamfree · 05/08/2025 16:44

If you have mortgage insurance (used to be a thing) you would have had to claim even if you were earning £1m a year. And national insurance is exactly for that. So do buzz off those people who think OP shouldn’t claim

Why would you? I had mortgage insurance and didn’t claim because I didn’t need to - great redundancy package. It wasn’t £1 million though. I only took it out because it was a condition of the mortgage.

Iamfree · 05/08/2025 16:44

If you have mortgage insurance (used to be a thing) you would have had to claim even if you were earning £1m a year. And national insurance is exactly for that. So do buzz off those people who think OP shouldn’t claim

Needtosoundoffandbreathe · 05/08/2025 16:42

20thcenturygirlwithherhandsonthewheel · 05/08/2025 14:44

Probably wouldn’t have minded so much, but if I received the income related jobseekers allowance then it wouldn’t be taken. I’d rather it was upfront and they just paid £70 a week instead or £90 and then taking the tax back

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But how would they know your tax liability at the point you claimed? Does it matter when the tax is deducted?

Mavvera · 05/08/2025 15:03

I don't think it is very well known that it's taxed as earnings, people just think its benefits and you get it but it's treated similar to the state pension.

Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 14:44

Btowngirl · 05/08/2025 14:37

Do you think anyone receiving that benefit should be exempt from paying tax? Or just if you have worked X amount of years prior?

Personally I agree that it’s pittance and not enough to live on. I feel sorry for people struggling on benefits. I do agree everyone should pay tax on their earnings over the threshold though. People do it if they work so why not if they’re unemployed?

Probably wouldn’t have minded so much, but if I received the income related jobseekers allowance then it wouldn’t be taken. I’d rather it was upfront and they just paid £70 a week instead or £90 and then taking the tax back

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Gardeningisrubbish · 05/08/2025 14:44

Gloriia · 05/08/2025 14:26

This.

Benefits are there to support people who don't have 16k savings and a spouse to support them in the short term.

Just get another job. I'm glad people on non means tested benefits pay tax, as they absolutely should do.

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We need a two tier benefits system. A more generous, non-means tested one for those who have worked, and a subsistence one for those that haven’t. And workers should have to pay more NI to receive these benefits. Working has to be incentivised.

Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 14:42

Needtosoundoffandbreathe · 05/08/2025 14:32

So pay your tax and stop complaining seeing as you are working again now.

Well. I don’t really have any choice about paying it or not do I? But I can be as pissed off about it as I like petal

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Mavvera · 05/08/2025 14:40

Do they really write a letter demanding tax even if you haven't reached the threshold for paying tax, surely that is not right.

Btowngirl · 05/08/2025 14:37

Do you think anyone receiving that benefit should be exempt from paying tax? Or just if you have worked X amount of years prior?

Personally I agree that it’s pittance and not enough to live on. I feel sorry for people struggling on benefits. I do agree everyone should pay tax on their earnings over the threshold though. People do it if they work so why not if they’re unemployed?

Needtosoundoffandbreathe · 05/08/2025 14:35

Good, I'm pleased for you. Just disagree with you moaning about paying tax on the JSA.

Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 14:34

Needtosoundoffandbreathe · 05/08/2025 14:22

This is whataboutery: you got a job after claiming JSA for 8 weeks from the sound of your OP. Did you receive a redundancy payment?

You're paying tax on the benefits you received because your earnings before and after the period during which you received JSA mean that overall you haven't paid enough tax.

It's not rocket science. I begrudge you claiming the JSA with £16k in savings, but it won't do me any good.

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Almost every post on here is whataboutery and facts contorted to meet the point the writer wants to make.

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Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 14:33

And btw , I did find a job after 8 weeks; but there was no guarantee that I would. I know plenty of others who have been out of work in my industry since last year. And I applied for over 100 jobs; so really made an effort

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Needtosoundoffandbreathe · 05/08/2025 14:32

So pay your tax and stop complaining seeing as you are working again now.

Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 14:31

Needtosoundoffandbreathe · 05/08/2025 14:26

She was made redundant and quite likely received a redundancy payment and went on to get a new job after claiming JSA for 8 weeks. I do understand that redundancy is not good (,been there myself in the past), but this poster appears to be over-egging things in order to complain about other people she thinks are less deserving getting benefits.

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I recieved a very crappy redundancy pay. Either way, I bloody contributed to Ni and tax, so yeah; damn fucking right I am claiming

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PinkSparklyPussyCat · 05/08/2025 14:30

Needtosoundoffandbreathe · 05/08/2025 14:26

She was made redundant and quite likely received a redundancy payment and went on to get a new job after claiming JSA for 8 weeks. I do understand that redundancy is not good (,been there myself in the past), but this poster appears to be over-egging things in order to complain about other people she thinks are less deserving getting benefits.

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So was I but I've taken nearly a year out. I'm waiting for DH to get some test results and then I'll start looking for a job and I'll be claiming JSA even though we have savings as I'm entitled to it.

Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 14:30

Gloriia · 05/08/2025 14:26

This.

Benefits are there to support people who don't have 16k savings and a spouse to support them in the short term.

Just get another job. I'm glad people on non means tested benefits pay tax, as they absolutely should do.

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National insurance was meant to be a CONTRIBUTORY benefit that people who worked could claim in case of unemployment. I contributed, so am entitled to claim. End of story.

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Original poster

20thcenturygirlwithherhandsonthewheel · 05/08/2025 14:28

And a woman born in 1950 could retire at age 60, a woman born in 1953 could retire at 63.

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Needtosoundoffandbreathe · 05/08/2025 14:26

PinkSparklyPussyCat · 05/08/2025 14:23

It's not rocket science. I begrudge you claiming the JSA with £16k in savings, but it won't do me any good.

You begrudge someone less than £500 a month because they have savings? £16k won't last very long in many cases

She was made redundant and quite likely received a redundancy payment and went on to get a new job after claiming JSA for 8 weeks. I do understand that redundancy is not good (,been there myself in the past), but this poster appears to be over-egging things in order to complain about other people she thinks are less deserving getting benefits.

Gloriia · 05/08/2025 14:26

HoskinsChoice · 05/08/2025 12:38

Yes, that's correct, (unless you need it, which you don't). It's called society. Thankfully there are greater numbers of people in society that understand this better than you and who are, well frankly, just nicer and less greedy than you. Although sadly, I think this level of selfish entitlement is on the rise. You are not alone.

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This.

Benefits are there to support people who don't have 16k savings and a spouse to support them in the short term.

Just get another job. I'm glad people on non means tested benefits pay tax, as they absolutely should do.

Melancholyflower · 05/08/2025 14:24

20thcenturygirlwithherhandsonthewheel · 05/08/2025 13:18

But, is that fair on everyone else then working and paying tax while they get so much for free.

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Of course it isn’t.