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Thread: 20% tax on jsa?

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    20% tax on jsa?

    mum had a letter through today from hm revenue and customs saying that her tax code for the year 6April to 5 April 2011 is BR.

    and at the bottom it says.

    we have asked job seekers allowance to use code BR for this year,which means you will pay tax at 20% on your job seekers allowance income.

    she has no savings and jsa is all the income she receives, are they taking the mick or what!

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    Re: 20% tax on jsa?

    They're treating it as a second income - don't know if other benefits come into play here or not, but she should be able to claim it back no problem as long as she's under threshold. But definitely write to them saying it's her one and only source of income.

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    Senior Member manwithnoname's Avatar
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    Re: 20% tax on jsa?

    from hmrc.gov.uk:
    BR code
    You'll see this on a PAYE Coding Notice for a second or additional job or pension if you pay tax at the basic rate. A BR code means you pay tax at 20 per cent on all of your second or additional earnings or pension income because your tax-free Personal Allowance has already been used up on your main job or pension.

    For example, you may get £5,000 from a second pension and pay £1,000 in tax (20 per cent of £5,000).


    There have been a few mistakes

    It might be worth getting in touch with them

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    Re: 20% tax on jsa?

    They're treating it as a second income
    she has not worked for over 2 years now and has been claiming jsa for well over 12 months.

    think ill get her to ring the tax office tomorrow cus sumthing ain't right.

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    Re: 20% tax on jsa?

    It seems lots of people have recently been given a BR code in error, basically the Revenue have cocked up.

    If you just wait, it should be put right automatically, or you could give your local tax office a ring if you're really bothered.

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    Re: 20% tax on jsa?

    If you just wait, it should be put right automatically, or you could give your local tax office a ring if you're really bothered.
    thanks i will get her to ring them first thing. cant see how one whould cock that up jsa is about half of the Personal Allowance for a year £6,475

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    Re: 20% tax on jsa?

    Quote Originally Posted by jetfire View Post
    thanks i will get her to ring them first thing. cant see how one whould cock that up jsa is about half of the Personal Allowance for a year £6,475
    It seems their new IT system... errr... doesn't work very well (apparently they're trying frantically to sort everything out by April 5th)

    Don't go paying for a premium rate phone call, anyway - tax isn't deducted from JSA at source regardless of the code issued, so your mum won't have to pay anything unless/until she has an additional income.

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