Job Seekers Allowance Help

acsacsacs

Just taken on a new client and going through his records to establish tax situation.

Ok, was made redundant by company in Sept with earning at say £9,000 and tax at £1,200 (rounded up figures)

Then signed on, however, the p45 from the job seekers (because he then went self employed)

was

Total pay including benefit £10,050 and Tax £980. (So obviously an increased in total pay but a decrease in tax to date)

Total taxable benefit is £1,195.00

So my question is when splitting down his earnings do i put

a) Employment income £9,000 - tax £,1200
b) Benefits £1,195
c) Other sole trader earnings

Or do I need to restrict the amount of tax at employment to take into account the P45 reduction in tax from the jobseekers allowance.

Any help would be appreciated!

T.C.

Won't the online tax return calculation do all this for you?

acsacsacs

Always put everything in IRIS, and just going through the stages.

ie:-

1) - Employment from P45,

2) Benefits (and reduction in tax) from P45

3) Self employment



With the exact figures

1) Earnings - £8,854.20 - Tax £1,168 (P45)

2) Benefits - £10,048.36 - Tax £979.80 (P45)

Gives earnings from benefits at £1,194.16

3) Self employment - Doesn't affect this matter


So it looks like during the benefits he has received a tax refund of £188.20 (Which is prob correct due to the significant drop). Either way I need to put the tax paid as £1,168 or £979.80.

In IRIS

Stage 1 is fine as from the P45

but would imagine stage 2 would be....

Benefits £1,194.16, Tax Refund £188.20 (IRIS doesn't let you put a refund in this section)



Either way I suppose this is irrelevant as I need to follow the latest P45 which reads

Total Pay - £10,048.36 (£1,194.16 being benefits) and Tax £979.80 (correct FINAL amount)


Think I've just answered my own question.

As long as my figures follow the latest P45 they should void the previous P45 figures, as employment/benefits always follow on from the previous employment.

groundy

You will need to complete the employment pages as per the employment P45 and then record the benefit as you mentioned. However, the tax refund received from benefits office will need to be recorded on the tax return also. I am not sure of the correct box number. But I do know there is a box tax refunded by tax office or DSS benefit agency.

Hope this helps

bumblebee

Re: posting on IRIS

Go to Reliefs, Miscellaneous, Tax calculation, Tax code and overpaid Unp and repaid tax.

acsacsacs

Yeah it does groundy.

Cheers

So will be

1) Earnings - £8,854.20 - Tax £1,168 (P45)

2) Benefits - £1,194.16 - Tax (£188.20)

3) Self Employment

Bit of a shortfall on IRIS not to have a box for this.

acsacsacs

Brilliant Bumblebee!!!

Thanks for that, would have spent ages looking for it!

groundy

Glad you've sorted it. Wish I'd known you were on IRIS could have sent you straight to it

acsacsacs

Cheers Groundy

bumblebee

acsacsacs wrote: »

Brilliant Bumblebee!!!

Thanks for that, would have spent ages looking for it!

No prob. Its just i did something similar and managed to remember the path thats all.