The Income Tax (Pay As You Earn) Regulations 2003

CHAPTER 2 JOBSEEKER'S ALLOWANCE: SPECIAL CASES

Scope of Chapter 2

165.—(1) This Chapter applies only to Chapter 2 claimants (as defined by regulation 148).

(2) Except for regulation 148 (interpretation), Chapter 1 does not apply to Chapter 2 claimants.

Jobseeker’s allowance paid directly to claimant

166.—(1) This regulation applies if the Department makes a payment of taxable jobseeker’s allowance directly to a Chapter 2 claimant.

(2) The Department must—

(a) record the amount, and

(b) pay the full sum without any deduction or repayment of income tax.

Jobseeker’s allowance paid by employer

167.—(1) If—

(a) a jobseeker’s allowance is paid to a Chapter 2 claimant by the claimant’s employer on behalf of the Department, and

(b) the employer calculates the jobseeker’s allowance payable by reference to instructions supplied by the Department,

the employer must also calculate the taxable jobseeker’s allowance in accordance with those instructions.

(2) If—

(a) a jobseeker’s allowance is paid to a Chapter 2 claimant by the claimant’s employer on behalf of the Department, and

(b) paragraph (1)(b) does not apply,

the Department must notify the employer of the amount of jobseeker’s allowance and of taxable jobseeker’s allowance.

(3) If the employer has undertaken to pay a jobseeker’s allowance on behalf of the Department, the Department must pay the full amount to the employer without any deduction on account of income tax.

Regulation 167 cases: application of other regulations

168.—(1) Parts 2 to 4 (codes; deduction and repayment of tax; payments, returns and information) apply to the taxable jobseeker’s allowance paid to a Chapter 2 claimant by the employer on behalf of the Department under regulation 167, as if it were a relevant payment from the employment.

(2) But this is subject to paragraph (3), which applies in any case in which it appears to the Inland Revenue that deduction of tax from the taxable jobseeker’s allowance paid by the employer on behalf of the Department by reference to the tax tables is impracticable.

(3) The Inland Revenue may make such other arrangements as are appropriate for the collection of tax in respect of taxable jobseeker’s allowance.

(4) Regulations 170 to 172 (information to be supplied etc) do not apply if—

(a) the Chapter 2 claimant’s employer has been paying the jobseeker’s allowance in accordance with regulation 167, and

(b) the employer provides the information in question.

When a Chapter 2 award ceases

169.  For the purposes of this Chapter, an award ceases when entitlement to a jobseeker’s allowance which depends on regulation 17 or 156 of the JSA Regulations ceases.

Information to be supplied at end of tax year

170.—(1) This regulation applies in respect of an award of taxable jobseeker’s allowance which continues beyond the end of a tax year.

(2) Before 1st June following the end of the tax year, the Department must give notice to the Inland Revenue and the Chapter 2 claimant of—

(a) the total jobseeker’s allowance, and

(b) the taxable jobseeker’s allowance,

paid in respect of the award during that tax year.

Information to be supplied when an award of taxable jobseeker’s allowance ceases

171.—(1) When an award of taxable jobseeker’s allowance ceases, the Department must give notice to the Inland Revenue and, except where the Chapter 2 claimant has died, the claimant, of—

(a) the total jobseeker’s allowance, and

(b) the taxable jobseeker’s allowance,

paid in respect of the award, showing the amounts appropriate to the award for the tax year in which it ceased.

(2) If the Department has been notified of the name and address of a deceased claimant’s personal representative within 30 days of the claimant’s death, the Department must send the notice to the personal representative.

Adjustments of taxable jobseeker’s allowance

172.—(1) Paragraph (2) applies if, after the issue of a notice under regulation 170 or 171(1)—

(a) further taxable jobseeker’s allowance is paid to the Chapter 2 claimant, or

(b) taxable jobseeker’s allowance overpaid is recovered from the Chapter 2 claimant.

(2) The Department must—

(a) notify the Chapter 2 claimant of the revised figure of total jobseeker’s allowance and the taxable jobseeker’s allowance included in that revised figure, and

(b) notify the Inland Revenue of any adjustment to the figure of taxable jobseeker’s allowance,

showing the amounts appropriate to each tax year.