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HMRC internal manual

PAYE Manual

PAYE operation: taxation of jobseeker’s allowance: introduction

Jobseeker’s Allowance (JSA) consists of both a contribution-based and income-based element paid at a standard rate. Those who have paid sufficient National Insurance contributions will receive JSA, irrespective of capital or of partner’s earnings. It is payable for up to 182 days.

The Employment Income (EIM) Manual tells you

  • Whether a benefit is taxable
  • How to deal with appeals against taxable benefits included in calculations

You will also find guidance for dealing with the various aspects of JSA in

  • The ‘Employment Maintenance’ business area of this manual
  • The ‘Coding’ business area of this manual

Individuals who do not qualify for contribution-based JSA may qualify for income-based JSA for themselves and their dependants. Income-based JSA will be provided for as long as it is needed, provided that the claimant is willing and able to accept suitable work and is seeking work.

Refer any requests for details of benefits payable to the Department for Work and Pensions (DWP). The DWP use the old employer PAYE reference where this is known.

For all tax purposes benefit claimants are live cases.