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HMRC internal manual

Employment Income Manual

Social security benefits: Inland Revenue notification of taxable benefits

Offices of the Benefits Agency and Employment Service Jobcentres are responsible for working out how much jobseeker’s allowance is taxable.

However, they pay these benefits in full. Income tax is not deducted at the time of payment. The weekly amounts of taxable benefit are added up and reported to the current Inland Revenue Area office on the following forms:

  • unemployed claimants:
    • P45(1)U - issued when the benefit claim ends
    • P14U - issued at the end of the tax year if the claim continues past 5 April
    • P180 - issued to notify the Inland Revenue Area office of changes to the amount of taxable benefit reported on P45(1)U or P14U
  • strikers and temporary stop claimants (see EIM76223 and EIM76224)
    • P181 - issued after any part period to 5 April and when the benefit claim ends.

You should accept the figures entered on these forms as correct. Indeed they will be final and conclusive for tax purposes unless there has been an objection (see EIM76303 onwards).

See EIM76307 about Benefit Office limits for reporting adjustments.