PAYE12055 - Coding: coding deductions and expenses: jobseeker’s allowance

Certain benefits claimed by the unemployed are classed as taxable benefits. We treat a record for a benefit claimant as a live record.

Generally you should prepare or amend the tax code of a benefit claimant in the usual way. However, you need to remember that the PAYE Service sends a form P6U(T) to tell the Benefit Office of a revised tax code. If you have to ‘manually’ issue the tax code you should use a form P6U.

Sometimes it may be necessary to estimate the amount of taxable benefit a claimant will receive. This may be because

• You need to work out the likely tax bill to help you with coding or transfer of allowances
• You have no report of the rate of benefit received

When this happens, take the taxable benefit at the full weekly rate for a single person or couple (married or not). However, you should remember that an unemployed husband will not receive benefit for his wife if she is working. You will find the rates on the chart P242.

Form P6U(T) or P6U not operated

A Benefit Office may not be able to use the details given on the P6U(T) or P6U. The reason for this will be given on

• A P6U rejection printout produced in the issuing office

• The back of the manual form

The Action Guide at PAYE12056 tells you the action to take in each case.