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HMRC internal manual

PAYE Manual

HM Revenue & Customs
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PAYE operation: taxation of jobseeker’s allowance: special cases

Special Cases are where benefits are paid to the following

  • Employees who have been temporarily laid off work or placed on short time working
  • Claimants who are share fishermen

Payments are made either by either the

  • Department for Work and Pensions (DWP)


  • Claimant’s employer

Where payments are made by the DWP, the DWP tells HMRC

  • The amount of taxable benefit paid (the figure is apportioned to and from 5 April where the claim period straddles that date) on a form P181 as soon as possible after benefit payments end

The DWP sends forms P181 to

  • The office dealing with the employee if known


  • The most convenient office

A carbon copy of form P181 is sent to the claimant. It gives details of the right of objection to the taxable sum.