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HMRC internal manual

PAYE Manual

PAYE operation: taxation of jobseeker’s allowance: temporary stop claimants and strikers

These are employees who are

  • Laid off work for a period or are on short time working (Benefit Offices call these temporary stop claimants)
  • On strike or directly involved in a trade dispute

Claimants in these classes may receive Jobseeker’s Allowance outside the modified PAYE scheme.

The Department for Work and Pensions pays Jobseeker’s Allowance to temporary stop claimants and strikers.

In Northern Ireland, BSB(NI) pays Jobseeker’s Allowance to both classes.

Individuals will pay tax at the UK (England, Wales and Northern Ireland) or Scottish Income Tax rate(s) depending on the individual’s residency status.

The Income Tax Residency Status screen on NPS will display ‘Scottish Taxpayer’ for the tax year where the individual is liable to pay tax at the Scottish rate(s) and their tax code will have an S prefix. Further information about Scottish tax is given at PAYE100035.