Share this content

Have DWP messed up?

Adding to employee to payroll and P45 (new employer pages) shows no taxable pay to date....but the employee page shows JSA paid of £1,300.  They do not prepare personal tax returns.  As JSA is taxable should I ignore the P45 provided and use the £1,300 as pay form previous employment? Or leave it? But then they may have an unexpected tax bill in the future. 


Please login or register to join the discussion.

By DMGbus
05th Dec 2012 08:36

Week 1 / month 1 basis

In my experience it is standard practice for DWP P45 forms to show a week 1 / month 1 basis PAYE code.   

Further in my experience this leads to a likely OVERPAYMENT in tax by the employee as taxable benefits received are most often less than the weekly tax allowances.

So, new employer operates week 1 / month 1 basis PAYE code per P45 received from employee (which will show no pay / tax being week 1 / momth 1 basis).

At the end of the tax year the employee can then review his or her overall tax situation and reclaim the overpaid tax (or more likely be unaware that they have overpaid tax).


Thanks (0)