Will try to keep this simple (and use example figures).
I've heard that the Jobseeker's Benefit is taxable income - is that true? If it is, then what's the situation below (am I doing the maths right?)
In 2008 I earned 10,000 from employment. Then I was made redundant, and earned 8,000 in Jobseeker's Benefit. While I was paying PAYE, I paid 3,000 in tax. My tax credits for the year are also 3,000
Total income = 18,000
Tax due on 18,000 (below the SRCOP) = 18,000 x 20% = 3,600
Tax due - tax credit = 600
Tax paid = 3000, so overpayment is 2,400, so a refund is due from the Revenue of 2,400.
Is that the right way to calculate this?
I've heard that the Jobseeker's Benefit is taxable income - is that true? If it is, then what's the situation below (am I doing the maths right?)
In 2008 I earned 10,000 from employment. Then I was made redundant, and earned 8,000 in Jobseeker's Benefit. While I was paying PAYE, I paid 3,000 in tax. My tax credits for the year are also 3,000
Total income = 18,000
Tax due on 18,000 (below the SRCOP) = 18,000 x 20% = 3,600
Tax due - tax credit = 600
Tax paid = 3000, so overpayment is 2,400, so a refund is due from the Revenue of 2,400.
Is that the right way to calculate this?