Hi
I have recently received my 'P60' for 2012/13 jobseekers allowance. I will have to pay tax as I only claimed JA from early March to end of tax year, I was working for the rest of the year, but made redundant in March.
So in cash terms, which is how I understand employment tax to work, I have received £142 of JA in the tax year.
However the P60 I have received for my tax calc shows £300, which is the amount of JA I was entitled to for the claimed period, but some of that was paid on 9/4/13 and the remainder two weeks later so outwith the tax year.
So is being taxed on the £300 correct? Doesn't this change the basic 'rules' of tax, ie are all people in employment, who are paid on the 15th of the month, expected to receive an employment P60 showing their wages from 15/3 to 5/4 as taxable in the 12/13 tax year now? I thought employment (or in this case, 'replacement of employment') income was taxed on a cash basis not an accruals basis?
I have recently received my 'P60' for 2012/13 jobseekers allowance. I will have to pay tax as I only claimed JA from early March to end of tax year, I was working for the rest of the year, but made redundant in March.
So in cash terms, which is how I understand employment tax to work, I have received £142 of JA in the tax year.
However the P60 I have received for my tax calc shows £300, which is the amount of JA I was entitled to for the claimed period, but some of that was paid on 9/4/13 and the remainder two weeks later so outwith the tax year.
So is being taxed on the £300 correct? Doesn't this change the basic 'rules' of tax, ie are all people in employment, who are paid on the 15th of the month, expected to receive an employment P60 showing their wages from 15/3 to 5/4 as taxable in the 12/13 tax year now? I thought employment (or in this case, 'replacement of employment') income was taxed on a cash basis not an accruals basis?