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HMRC internal manual

PAYE Manual

Employment maintenance: jobseeker’s allowance: what happens when a JSA claim ceases

When a claim ends the Department for Work and Pensions (DWP) computer (JSAPS)

  • Does a tax calculation where it has a cumulative code. The calculation takes into account the benefit paid and any previous pay and tax details
  • Will, wherever possible under JSAPS, automatically update the record with P45(1)U details

Note: DWP will use a new unique employer reference (This content has been withheld because of exemptions in the Freedom of Information Act 2000)  

  • Sends form P45 (Parts 1A, 2 and 3) direct to the claimant

Where the tax calculation shows an underpayment the DWP

  • Does not deduct tax
  • Converts the code to a Week 1 / Month 1 basis

Exceptionally in clerical cases the manual form P45(1)U issued, shows the tax due as a potential underpayment at item 8.

Where there is an overpayment the DWP repays the claimant any tax overpaid.

The end of claim data (P45(1)U notifications) is identified under JSAPS as Record Type 3 information. This consists of all the information given on form P45(1)U.

This information will be posted automatically to the employment record.