PAYE78075 | 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)

Or

• 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

Otherwise

• 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.